Personal loans have grown to become a preferred way to finance your small and large expenses. Non-Banking Financial Companies (NBFCs) offer easy-to-meet terms and conditions, and quick disbursal time. The funds are often transferred to your account within a matter of hours.
There are certain eligibility parameters that you need to fulfil before getting approval on your personal loan. Non-compliance of these criteria can lead to your loan application getting rejected.
Here are 5 tips to improve your chances of approval for a personal loan:
1. Improve your CIBIL Score
Start by improving your CIBIL Score. A score of 685 and more is ideal to get approval for unsecured loans. Pay your total credit card dues on time and keep the credit utilisation under 30% of your limit to increase your credit score.
2. Lower your monthly debts
There is a high chance of your loan application getting rejected if your monthly debts are more than 50% of your income. Clear any existing loan and pay off your credit card bills to lower your debt.
3. Check the list of required documents
Ensure that you have all the required documents ready with you, such as
- KYC documents: Aadhaar/ PAN card/ passport/ voter’s ID
- Employee ID card
- Salary slips of the last 3 months.
- Bank account statements of the previous 3 months.
Self-employed applicants may need to submit other documents such as income tax returns, previous year’s turnover, and proof of business.
4. Fulfil the eligibility criteria
There are several eligibility parameters you need to fulfil to apply for a personal loan. For a Bajaj Finserv Personal Loan, the criteria are as follows:
- Nationality: Indian
- Age: 21 years to 80 years* (upper age limit at the end of your loan tenure)
- Employed with: Public, private, or MNC.
- CIBIL Score: 685 or higher.
- Monthly salary: Starting Rs. 25,001, based on the city you live in.
5. Apply for the right loan amount
Applying for the right loan amount is essential to ensure your application is approved. A personal loan eligibility calculator tells you precisely the amount you are eligible to get based on your income status, existing debts, and other factors.
In addition to the above, your job stability also plays a crucial role in the approval of a personal loan. Frequently switching job shows irregularity in employment and leads to loan rejection.
Keep the above tips in mind when you apply for a personal loan for hassle-free approval.
