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Tips to Boost Your Personal Loan Eligibility

Clix February 15, 2021

 

You may need funds for different reasons and purposes. Be it a wedding, home renovation, medical expenses, education, or travel, if you are not prepared for it financially, it may burn a hole in your pocket and choke your finances. This is where a personal loan comes in handy. In fact, you may use personal loans for any purpose of your choice, whether it’s a vacation or an emergency. The lenders do not put any restrictions as to where you can spend the money.

 

MOST READ: THINGS YOU SHOULD NEVER OVERLOOK WHEN APPLYING FOR A PERSONAL LOAN

 

With easy application and quick approval, a personal loan can be a great source of financing you can avail today. However, in order to qualify for such a loan, you need to meet the eligibility conditions set by the lender, failing which you may have your approval delayed or denied.

 

If you feel that your choice of lender is offering a lower sanction than your requirement, then check out these handy tips to boost your personal loan eligibility and claim the funds you need.

 

Improve and Maintain a High Credit Score

Lenders look at your credit score as a parameter to establish your creditworthiness. It is a 3-digit score that you receive based on your credit history and financial habits. Ranging from 300 to 900, a score well-above 700 is good enough to get you a loan easily. However, if your score is less than that, the lender may perceive you as a high-risk borrower and may boost up your interest rate or reject your loan application downright. Here are a few useful tips that you can follow to improve your credit score:

 

  • Always stay up-to-date with your payments
  • Check your credit report for any errors or inaccuracies
  • Maintain your old accounts instead of closing them (if they are not incurring any fees)
  • Add diversity to your credit mix
  • Accept increases in your credit limit

 

Go through this blog to find more tips and tricks to improve your credit score. Check your credit score and see where you stand. If it is anywhere less than 700, use the above tips to improve it before applying for a personal loan. If it gets rejected, it will further impact your credit score negatively and make it even harder to get loan approval.

 

Get Rid of Your Existing Debts and Credit Card Bills

Before you apply for a new personal loan, try to get rid of your existing debts first, as your debt-to-income ratio can have a great impact on your loan eligibility. If there are multiple credit cards and loans to your name, the lenders tend to believe that you are already short on funds and you have higher chances of defaulting on payments. Such a perspective ultimately hampers your chance of getting loan approval.

 

Show All Income Sources While Applying

Lenders give due importance to your income, as it forms the basis to assess your repayment capacity. So, it’s important to show all your income sources while applying for a personal loan. Apart from your salary, show your alternate sources of income as well, such as rental income, spouse’s salary, bonuses, and incentives, etc.

Choose a Longer Loan Tenure

When you choose a longer loan tenure, you get more time to repay your loan and your EMIs get distributed into smaller monthly amounts. Lower EMIs are easier to fit in your monthly budget, due to which you have lower chances of defaulting on payments. Lower EMIs and longer loan tenure minimize the lender’s risk and also helps you to manage your finances better. Use the personal loan EMI calculator to calculate your EMIs and choose a loan plan that best suits your income and repayment capacity.

Avoid Submitting Multiple Loan Applications Simultaneously

When you seek a personal loan, the lender checks your credit report to assess your credit history and default risk. These are hard enquiries that show in your credit report. Therefore, applying for multiple loans simultaneously can give an impression that you are credit hungry and in dire need of money. This poses you as a high-risk borrower, as a result of which the lenders may choose to reject your financing request.

The best trick is to be patient, evaluate the available options, check eligibility conditions, use the EMI calculator, and apply to a lender that is most suitable for your needs.

Apply to a Lender with Easy Eligibility Conditions

Finally, apply to a lender with the simplest eligibility criteria. For instance, Clix Capital has the following eligibility conditions that are quite easy to fulfil:

 

    • You should be between 25 to 58 years of age
    • You should be a Citizen of India
    • You should be a salaried individual making at least ₹ 25,000 per month
    • You should be working with the current employer for at least 6 months, and should have a total work experience of at least 12 months

 

If you meet the above eligibility conditions, you just need to get some basic documents verified online and your application process is complete. Some documents that you have to be ready with include the following:

 

    • Duly filled online application form
    • Recent passport size photograph
    • Identity proof like Aadhaar card or Pan card, or government ID for government employees
    • Address proof like Aadhaar card, voter ID, passport, driving license, etc.
    • Income proof, including your last month’s payslip or current year’s Form 16

All of the above-mentioned documents and details can be verified online on our website here: https://apply.clix.capital without the need to upload anything.

In addition to easy eligibility conditions and minimal documentation requirements, Clix Capital offers personal loans of up to ₹ 25 lakh on a collateral-free basis. You may repay your loan amount over a flexible loan tenor of 12 to 48 months. With funds disbursal within 15 minutes* of loan approval, a personal loan from Clix Capital is the fastest and easiest way to get funds for your planned or unplanned financial needs.

 

For any queries, find us on Facebook, Instagram, Linkedin, Twitter, or Whatsapp

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

 

* T & C Apply

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