How to improve your chances of a personal loan approval

Personal loans are unsecured loans and are expensive. So, one should avoid such high-interest loans unless it’s absolutely necessary.

Without any collateral security, getting a personal loan is a difficult task as lots of eligibility conditions to be fulfilled to get a loan sanctioned.

An instant loan assists individuals to meet their financial requirements

5 tips to improve your chances of getting that loan application approved:

1. Decrease your debt-to-income ratio

Preferably, the total amount of EMIs that you are liable to pay every month should not exceed 30-40 per cent of your monthly income.

2. Improve your CIBIL score

Most lenders in the country depend on the CIBIL score, which ranges between 300 and 900. A credit score that is more than 725 is affirmed as a desirable score.

3. Include all sources of income

Recommended that you include not only your regular salary but also additional sources of income like rental income, part-time income, etc.

4. Do not apply for multiple loans at one go

If you apply for numerous loans at one go, all the lenders are likely to initiate multiple hard inquiries on your credit report. This will automatically bring down your credit score.

5. Select a lender with the eligibility criteria you can fulfill

Verify the various eligibility conditions of different lenders and choose the one whose eligibility criteria you can fulfill.

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