How salaried employees can qualify for instant personal loan easily?

Instant personal loans have gained a lot of popularity in recent years; such a loan can help you out if you are in a sticky situation financially.
To check your eligibility to avail a personal loan, you can check the personal loan eligibility calculator shared by most personal loan providers on their websites.
To check your eligibility to avail a personal loan, you can check the personal loan eligibility calculator shared by most personal loan providers on their websites.
Published on Mar 22, 2022 11:37 AM IST
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ByHT Brand Studio

Amid inflation and the cost of living rising constantly, instant personal loans have emerged as the need of the hour for salaried employees. An instant personal loan can be used for a range of reasons, including a wedding, a vacation with the family, or just to meet unexpected and immediate expenses.

It has become much easier to get an instant personal loan today. Personal loan interest rates have also dropped, enabling significantly improved access.

Through Finserv MARKETS, you can easily avail personal loans of up to Rs. 25 lakhs with an interest rate starting at 10.49%. The loan can be repaid easily as well, with a flexible repayment tenure of 5 years.

To check your eligibility to avail a personal loan, you can check the personal loan eligibility calculator shared by most personal loan providers on their websites.

Factors that Affect Personal Loan Eligibility

While a calculator may inform you of the amount you are able to avail as a personal loan, it is important to understand the factors that could affect your eligibility for the same. Read on below to learn the different factors personal loan providers consider to assess your eligibility.

Annual Income:

This is the most important factor for assessing your personal loan eligibility since it helps determine your ability to repay your loan.

Residence:

The city and locality where you live could often determine your standard of living, and whether your place of residence is rented or owned could help the provider understand your financial obligations and, thus, your eligibility for a personal loan.

Debt-to-Income Ratio:

Your current debt-to-income ratio is an indicator of your financial obligations and well-being. If your debt-to-income ratio is too high, your personal loan provider could be concerned about your inability to repay the loan. This could definitely hurt your chances of availing an instant personal loan.

Employer:

The company you work for also has a significant role to play in terms of your eligibility for availing a personal loan. Since the reputation of the company you work for is factored in while calculating your credit score, it can have an impact on your eligibility for a personal loan as well.

Credit Score:

Calculated by TransUnion CIBIL Limited (CIBIL), your credit score represents your financial management skills. It is demonstrative of how responsible you are with credit and will help the loan provider assess your eligibility for an instant personal loan.

How to Improve your Eligibility for a Personal Loan

Sometimes, despite your best efforts, it is possible that you do not qualify for an instant personal loan. It is, however, not necessary to despair since it is possible to improve your eligibility in many ways. Read on below to learn how you can improve your eligibility for a personal loan.

Maintain a steady income:

To a provider of an instant personal loan, it is extremely important that you have a steady income. Try not to change jobs too often, as this may reflect badly on your ability to repay the loan and hurt your eligibility for a personal loan.

Improve your credit score:

A credit score granted by CIBIL above 750 is considered a good score, while anything below that might suggest a lack of effective financial management to a lender. If your score is below 750, you can increase it in several ways. You could cancel all the credit cards you are not using or shut the inactive bank accounts. You could also make it a practice to start paying your credit card bills early.

Reduce or eliminate your debt:

If you have any outstanding payments towards your student loan, home loan, or even credit card, make sure to repay those as quickly as possible. This will significantly lower your debt-to-income ratio and make it easier for you to avail a loan.

Limit your loan applications:

While your eligibility is being assessed, your financial history is looked into. If you have made too many loan applications within a short duration of time, the lender gets the impression that your financial health is not good. Ideally, do not apply for a loan more than once in a 6-month period.

Conclusion

By following the steps given above, it will be easy for salaried employees to qualify for instant personal loans. It is advisable to go through Finserv MARKETS, where you can avail loans for up to Rs. 25 lakhs, with low personal loan interest rates, that can be repaid over a flexible tenure of 5 years.

 

This article has been authored by Mithilesh Singh. He is a writer, who specialises in writing content on Insurance and Finance subjects. He is a Digital Marketing Consultant, Blogger, and Co-Founder of  Techpreview.

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Tuesday, July 05, 2022