Emergencies are unpredicted and can come in any form, be it a medical one, or an unexpected major expense. These unbidden things cost a lot. And if one is not adequately prepared it can prove to be a hole in their pocket and can affect their financial health. The condition can even become worse, to avoid such a condition you should know the way to come out of a sudden financial crisis.
Personal loans are the one which can help you in your financial crisis. It provides you funds in no time without any hassle. The loan is fast processing with quick disbursal which helps people to trust it even in emergencies. Personal loans can also be opted to fulfill your wants, but you have to be a bit careful when using it as the interest rate charged on a personal loan is higher than other loans.
However, to qualify for an instant personal loan or a personal loan online, you need to meet the lender’s personal loan eligibility criteria. In case you are not, your personal loan application will get rejected. So, to be a personal loan eligible for all the time you have to take care of certain things.
How to improve your eligibility for an Instant Personal Loan
Maintain a Good Credit Score
- Your credit score is one of the major personal loan eligibility criteria which any lender looks for. It denotes your repayment history and indirectly your financial health. Hence, it becomes very important to maintain a good credit score if you are planning to avail a personal loan shortly.
- To maintain a good credit score, you need to be timely with your payments and EMIs. Don’t miss paying even a single EMI. In case you are paying your EMIs after your scheduled dates, then it can affect your credit score negatively.
Select the Right Financial Institution or Bank.
- The selection of your lender plays a very important role as your loan approval and rejection completely depend on them.
- So, before you apply, research well for the lenders offering personal loans in the market. Try to avail with which you already have an existing relationship.
- Try to check for the eligibility criteria and apply with which eligibility criteria required is minimal.
- If you are a salaried employee then, you can apply for a personal loan from the bank with which you hold your salary account.
- It’s not always important to go with big reputed banks. Sometimes trusting small banks / DSAs or NBFC can also act in your favor.
Adding Alternative Source of Income
- Lenders check your salary/income before affirming your credit application. Furthermore, having a substitute wellspring of income can build your profile. Your alternate source of income can be from your rented property, stocks, and shares and so on.
Adding a Co-borrower
- If you are applying for a personal loan and have a working spouse, adding your spouse as a co-borrower to your personal loan application or applying for a joint personal loan is best. Doing this not only adds to your personal loan eligibility but also reduces your liabilities of repaying the loan.
- Moreover, adding a record of your variable pay/income such as from a bonus, incentives, etc. while applying for a personal loan can increase your personal loan eligibility.
However, some of the common eligibility criteria are-
- You must be an Indian resident.
- Your age should be between 23-58 years.
- You have a stable source of income.
- Different lenders have defined their income criteria to meet their eligibility.
You should have the documents required handy with you- which includes:
- Address proof – Aadhar/ Voter ID card
- ID proof- Passport/Driving License.
- PAN Card.
- Bank Statement – Last 3 months.
- IT return Documents
Before you apply for a personal loan, you should check your eligibility with different lenders. Search for best offers and in addition to it having proper planning to repay it is a must.