Personal loans can be a handy way to deal with unforeseen financial issues whose aftermath leave you under the worse of wear. With fairly simplified means of application, straightforward eligibility criteria and rapid disbursal, they are one of the most sought ways of arranging credit in our country. The credit of the personal-finance sector excluding housing has seen a CAGR of 9.89% in the year 2018-19 as per a report published by the India Brand Equity Fund, standing at a whopping Rs. 9,353 billion($139.51 billion).
IBEF report on the Status of the Indian Banking sector, January 2019
https://www.ibef.org/download/banking-jan-2019.pdf
This can be directly attributed to the effects of urbanization and an increase in the number of disposable incomes among the country’s working population, who are now seeking a higher standard of living.
This credit product can also be solicited in order to fund personal ventures or any other expense that may fall beyond your wallet’s immediate capacity, as long as you possess the means to reimburse your debtor in the future. While the challenges of acquiring an unsecured personal loan may be relatively uncomplicated in comparison to other types of loan arrangements, there are still some conditions that have to be met in order to be successful in this endeavor. Failing to do so may result in the disbursement of the loan being delayed or securing it at a rate of repayment that may not fit in with your current financial status. One of the easiest ways to determine your degree of eligibility for personal loans is by making use of a personal loan calculator, and one such eligibility calculator is readily available on the Finserv MARKETS website. This calculator has a very user-friendly interface where you only have to enter your net income and preferred EMI to ascertain the maximum loan amount you’re eligible for. However, if your financial data does not meet the criteria required for the loan amount you’re seeking for, here are some quick tips to get it on the terms you want:
- Manage Your Existing Debt: Pay off as much of your existing loans and credit card debt before inquiring about these products, as making sure that your debt to income ratio stays reasonable is crucial in improving your eligibility for personal loans. This is because lenders want to ensure that your current expenses will not get in the way of your repayment. Try to restrict your debt to income ratio below 50%, as values higher than this may portray your picture as a liability under the eyes of your lender.
- Work On Your Credit Score: A good credit score is a paramount significance in the eyes of any lender as it presents an overview of your history of borrowing and repayment. Timely payment of your EMIs on existing loans goes a long way towards securing this and any late payments may kill your overall rating. Although any score between 700-750 would be enough but the credit score above this range would be a strong green signal saying you have got a great repayment history.
- Be Transparent About Your Income: Financial service providers always check your sources of income, in order to ascertain your ability to repay a personal loan for the defined time period. Including the reporting of other revenue streams that you may possess, other than your salary – such as property- may improve your standing in front of your lender. Additionally, having a working spouse entitles you to apply for a joint personal loan while variable sources of income such as commissions, incentives and bonuses may also help your cause.
- Pick Longer Repayment Tenures: Choosing a longer-term period may increase your chances of securing a loan due to relatively lower EMIs which would help you in timely payments. Making use of a personal loan calculator that can determine your EMI beforehand, like the one we have on our Finserv MARKETS portal, would help you in planning the repayment process in a manner that doesn’t disrupt any of your other financial activities.
- Find Lenders With Eligibility Criteria You Can Meet: A safe bet, in any case, would be applying for a loan from a lender with moderate personal loan eligibility criteria that fall within your realm of achievement. The personal loan calculator available on the Finserv MARKETS is capable of defining the service eligibility you’re entitled for based on your previous financial records.
- Avoid Soliciting Multiple Loans At A Time: People usually sought for multiple loans only when one doesn’t meet their requirements. When you apply for a personal loan, the concerned institution question about your credit score with your credit bureau which is reflected in your credit report. This can prove to be counterproductive as banks and lenders tend to view those with existing loans as high-risk borrowers. Applying for a combination of unsecured and secured loans may give the lender some relief and sense of security when evaluating your eligibility for personal loans.
After meeting the criteria required of you and selecting a personal loan service that meets your needs, you will be asked to submit your documentation in the form of your Aadhar, PAN card and bank statements as a final formality before the sum is dispensed to you. The eligibility criteria for securing a personal loan service on the Finserv MARKETS portal are fairly fundamental in nature, requiring that you be an employed resident of the country within the age group of 23-58. Once you meet the eligibility criteria your loan will be approved in just 3 minutes and the amount would be credited into your bank account within 24 hours. The entire is online with a minimal documentation process.
