Loans have become the ultimate solution for people looking for financial aid. Getting loans from banks has become easy and a cakewalk with the help of increasing technology.
Technology has played a crucial role in narrowing the distance between the potential borrower and the lender. The lenders like Banks, and NBFCs have set specific guidelines for the borrowers who are willing to get their loans approved. The eligibility criteria for the loans are different for the different types of loans.
Based on the needs and demands of the borrower, banks and NBFCs are providing loans at different interest rates. It is advisable for the borrowers to know every term and condition of the loan before applying for it. It shall also prevent the borrower to face any rejection from loans. Rejection from loans can affect your CIBIL Score badly. Hence, it is very important to know the details of detailed aspects of the eligibility criteria for the loans.
Eligibility for the Loan
- Credit Score: Credit score is one of the considerable factors for determining the eligibility criteria for a loan. It is a three-digit numeric code generated by the Credit Information Bureau (India) Ltd. Usually a person having a CIBIL score of more than 700 has more chances of getting a loan. Boost your credit score to increase your chances of getting a loan.
- Income: How much loan amount you can get is determined by your monthly income. A person having a minimum income of Rs. 20000 is eligible for getting a loan easily. But this depends upon the city you are living in and your earnings.
- Debt-to-income ratio: Debt-to-income ratio is the calculation of your income divided by the EMIs that a person is paying per month. The ideal debt-to-income ratio is less than 36%.
- Age: A person aged 21 years is eligible for getting a loan in our country.
Documents required to qualify for a loan
- Duly filled loan application form: One of the required documents for a loan is a duly filled application form. This document requires your personal details like CIBIL score, the reason for applying for a loan, and personal details. Carefully filling out the application form with correct information is the first step for people who are applying for a loan.
- Identity Proof: Identity proof includes the KYC documents like voter ID, Adhaar Card, PAN Card details, and passport-size photographs.
- Address Proof: A recent utility bill can fulfill the purpose of address proof for people who are applying for a loan.
- Income Proof: How much you are earning is the general question that a bank official will ask you if you are thinking of applying for a loan. Recent three months' salary slips will be required while applying for a loan.
Tips and Tricks for Getting a Loan Approved
There are certain tips and tricks that one should follow for getting a loan approved hassle-free. Unsecured Loans mainly depend on the salary, CIBIL Score, and bank balance of a person. Hence, it is easy to boost the CIBIL Score easily with the steps mentioned below in the article. In addition to that you can should keep all the documents in hand before applying for the loans.
- Get a Credit Card: Getting a credit card will help you to make a good credit score. Paying an outstanding Credit Card or EMI for the credit card can help you to achieve the goal.
- Maintain the Minimum Bank Balance: Keeping a minimum bank balance will make an impact on the lender, it shall give evidence that you have security and you are capable of repaying the loan.
- Do not raise the inquiry on CIBIL simultaneously: Checking CIBIL Score regularly can impact the CIBIL Score. It decreases the CIBIL Score and also lenders do not approve loans to people who have checked their CIBIL more than 2 times in a month.
- Get a personal loan of a lesser loan amount: A loan with a lesser amount can help in making the desired CIBIL Score. Get a personal loan approved instantly and make your credit score.
- Rectify NA-NH Case: Sometimes the CIBIL Score generated is wrong, a person can easily get it rectified through the official website.
Conclusion
There are certain tips that a person should know to apply and get the loan approved hassle-free. The article above shall help you to know the prescribed eligibility criteria set by the banks and NBCFs for the borrowers. The article also guides you by giving you quick tips that can help you to get the loan approved and disbursed. Become financially stable and aware with us.