HOW PERSONAL LOAN APPROVAL CHANCES CAN BE IMPROVED?

14 Jul

Everyone wants to get a personal loan with the lowest interest rate possible but at the same time, everyone wants that their loan application will get approved. This is because due to the pandemic of coronavirus, a lot of banks and money lenders have changed the eligibility criteria and have made it a little stricter than it was earlier. Therefore, a lot of loan applications are also being getting rejected. An emi calculator for personal loan helps the borrowers to calculate the amount of the EMIs in advance to get an idea. The loan application of a personal loan is evaluated on many parameters so, it is always wise to take some actions today in order to increase your chances of getting a personal loan in the future.

The pandemic of coronavirus has shown that it is always better to make some advance preparations for the needs of future, whether it is to re-establish your business or to take care of your child's higher education or to clear some debts. Therefore, a personal loan is preferred by a lot of people as there is no need to pledge a collateral and a personal loan can also help you to get ready for all the goals that are not easy to get.

Following are some of the ways in which a person can improve the chances of the approval of his personal loan: -

IMPROVE YOUR CREDIT SCORE- A credit score is nothing but a three digit number which explains the credit history of an applicant. The money lenders use the credit score as a way to determine the default risk on the part of the borrower and to understand as to how disciplined is the applicant with his finances. An ideal credit score is around 750. You should firstly find out your credit score and if it is not good, then you should really try to improve it. A credit score can be improved by paying all the EMIs on time, by paying all the credit card dues on time and by also limiting the utilization of the credit card. If you will have an ideal or a higher credit score, it will really improve your chances of getting the approval of a personal loan and you can also get the best interest rates too. ICICI bank personal loan interest rate is really low and affordable as compared to the other interest rates.
MAINTAIN A STEADY EMPLOYMENT PROFILE- The money lenders or the banks always want some assurance that you are earning enough that you will be able to repay the amount of loan easily and therefore, they prefer the borrowers which have a steady income history as it proves that the borrower has a financially sound future. The banks or the money lenders prefer the applicant who is steady in his job, has a steady employment profile and who avoids frequent changes in his job.
ADD A CO-APPLICANT OR A GUARANTOR- If you do not have a good credit score or a good steady source of income or if you are not able to meet the eligibility criteria that is set by the bank or the money lender, you can opt for a joint loan too. In a joint loan, you will be having a co-applicant or a guarantor with you. The co-applicant must be having a good credit profile and also a stable source of income. This will help you to minimize the credit risk as the guarantor or the co-applicant will be equally responsible and liable to pay the loan. Also, a co-applicant will increase the possibility of the personal loan getting approved even for a higher amount.