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6 Easy Ways to Increase Your Personal Loan Eligibility for Funding Your Higher Education

Clix November 16, 2021

 

Personal loans have become extremely popular in India over the last few years. Although personal loans come with no end-use restrictions, many lenders offer specialised higher education loan to fund your higher education in any Indian or foreign university. Whether you are a student, self-employed individual, salaried employee, or a housewife, you can apply for an instant loan online and get the required money to fund your higher education.

As compared to traditional education loans, personal loans are easier to avail with simpler eligibility conditions and minimal documentation requirements. You can use your loan amount for any education-related purpose you want, including your admission fee, tuition fee, travel costs, accommodation, living expenses, study material, or equipment. If you are looking forward to applying for a higher education loan, below are 6 easy ways to increase your personal loan eligibility.

1.    Be Regular with Your Payments and Maintain a High Credit Score

One of the most significant criteria lenders use to determine your personal loan eligibility is your repayment history and credit score. Your regularity of credit card bill and loan EMI payments is recorded in your credit report. When you apply for a higher education loan, lenders check your credit score and look at your repayment history. By paying your bills and EMIs on time, you can create a positive history of repayments. On the other hand, any missed or delayed EMI payments will show in your credit report and reduce your credit score.

A credit score is a 3-digit number you get based on your repayment history, credit profile, DTI ratio, and other financial factors. Ranging from 300 to 900, the higher your score, the greater your chances of getting instant loan approval. Not only this, with a higher credit score, you also become eligible to get a higher loan amount at lower interest rates. Some ways to increase your credit score include decreasing your credit utilisation ratio, diversifying your credit portfolio, checking your credit report for any errors, and maintaining old accounts to prolong your credit history.

2.    Select a Longer Loan Tenure

Most lenders allow borrowers to select their loan tenure according to their repayment capacity. For instance, Clix Capital gives you 12 to 48 months to repay your higher education loan. When you choose a longer loan tenure, you get a longer period to repay your loan with easier EMIs. This increases your chances of timely EMI payment, thereby reducing the risk of defaulting for the lender. You may use a personal loan EMI calculator to calculate your EMIs beforehand and choose a loan tenure with EMIs you can easily afford.

3.    Reduce Your DTI Ratio

When you apply for a personal loan, lenders want to know your other financial obligations and loan payments you are making at present. If you are already indebted heavily, the lender may perceive you as a high-risk borrower and reject your loan application. Therefore, it is advisable to pay off your existing loans first and then apply for another loan. Only then you can increase your chances of getting loan approval and fund your higher education in the university of your choice.

4.    Increase Your Income

Since personal loans are unsecured, financial institutions always rely on your income to approve your loan application. Therefore, increasing your income is an excellent way to improve your personal loan eligibility. For instance, if you have an extra property, you may rent it out to increase your income and mention it as an income source in your loan application. You may start taking tuitions or use any of your productive skills to increase your income sources. Besides these, do not forget to mention your variable income in your loan application, such as incentives, commissions, bonuses, and others. Some lenders take these into consideration while approving your personal loan.

5.    Avoid Applying for Multiple Loans at a Time

When you apply for a loan, lenders make a hard inquiry on your credit report to assess your creditworthiness. Several loan applications at a time invite several hard inquiries on your report. As a result, lenders perceive you as a credit-hungry borrower and decide to reject your loan application. Therefore, it is advisable to compare several lenders and apply for the one that best suits your requirements, preferences, and budget.

6.    Check the Lender’s Personal Loan Eligibility Requirements Beforehand

NBFCs have simple eligibility conditions that anyone can fulfil with ease. However, no matter how simple they are, you must check them and ensure that you are eligible for it. Otherwise, the lender may reject your loan application for a trivial reason, and you may end up reducing your credit score. For instance, when you apply for a personal loan from Clix Capital, you need to fulfil the following personal loan eligibility conditions:

    • You should be 25 to 58 years of age
    • You must be a citizen of India
    • You should be a salaried individual drawing a salary of at least ₹ 25,000 every month
    • You should be working with your current employer for at least 6 months, and you should have a total work experience of at least 12 months

Apart from these, you must also check your credit score and ensure that it fulfils the lender’s minimum requirement. Based on your credit score, the lender will determine your creditworthiness and approve your loan application.

If you are looking for a higher education loan to fund your education in India or abroad, get in touch with Clix Capital now. We offer instant loan online of up to ₹ 25 lakhs at competitive interest rates with flexible repayment tenure. Take advantage of our easy eligibility conditions and minimal documentation requirements to get instant loan approval within 15 minutes*. Once approved, you can use your loan amount to cover any of your education-related expenses, including fees, accommodation, travel, study material, equipment, or anything else.

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You can also reach out to us at hello@clix.capital or call us at 1800 200 9898

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