Personal loans are easy financing options as they are unsecured loans that can be obtained at attractive interest rates. Additionally, debtors are free to use the money as per their needs, including paying off medical bills, taking a luxurious holiday or more. To qualify for a personal loan, you need to meet certain eligibility criteria. Here is a list of factors that contribute to improving your chances of getting a personal loan.

How to improve your chances of getting a personal loan

• Ensure a good CIBIL Score

Your CIBIL Score, commonly referred to as your credit score, is a measure of your creditworthiness. Lending institutions typically look for a score of at least 750 points to determine good financial health of borrowers. If you are wondering how to get a personal loan quickly and easily, ensure that you maintain a good CIBIL Score by making timely payments of bills, clearing debt, and not exceeding credit card limits. 

• Validate the lender’s eligibility criteria

Many NBFCs provide an online personal loan eligibility calculator to determine your loan amount. Before zeroing down on a lender, ensure that you meet their specified eligibility criteria and confirm your loan eligibility. Doing this will ensure you do not face any chances of rejection in getting a personal loan due to age and income or any other parameters.. 

• Avoid applying for many loans simultaneously

In an attempt to be certain of getting a loan, one may apply for multiple loans with different institutions. Every loan application leads to a detailed enquiry on your credit report, which could hurt your credit score too. It is sensible to have a gap of at least 6 months between loan applications to increase the chances of approval. 

• Disclose all your income streams

Lenders evaluate the creditworthiness of borrowers by looking at their income details and credit score. Hence, it is advisable to disclose all your income sources in addition to your monthly fixed income to build a solid case for your creditworthiness. This may include performance bonuses, rent from a property and other passive income sources on account of investments. 

• Apply with a co-applicant

Having a co-applicant can certainly increase your chances of getting a personal loan since the joint income is taken into consideration. It is equally important to have a co-applicant with a good credit score. It helps strengthen your creditworthiness and also improve the chances of getting the loan at a reasonable interest rate.

The debt-to-income (DTI) ratio is calculated by dividing your monthly debt by gross monthly income, which can indicate your ability to repay the debt.  A high debt-to-income ratio could be a red flag for lenders and may lessen your chances of getting a loan. To increase the probability of getting your loan approved, you must ensure that the debt-to-income ratio does not exceed 40% of your monthly income. 

Whether you are applying for a personal loan to cover your big or small expenses, keep in mind the above-mentioned factors to increase the chances of getting your application approved. With a Bajaj Finserv Personal Loan you can get up to Rs. 35 lakh with convenient tenures of up to 84 months and disbursal of funds within 24 hours*. You can also enjoy the benefit of using the Bajaj Finserv Personal Loan EMI Calculator which helps you calculate your monthly EMIs and repayment tenures. This makes it easy for you to manage your finances in a more efficient manner. Visit the Bajaj Finserv website to get your personal loan today.