Are you planning to make any repairs around your home?
Do you want to avail an SBI personal loan to cover for the expenses?
Ok it is great! But before that it is essential that you should be sure about your eligibility.
The following tips would help you a great to boost your personalloan eligibility.
Apply only for the loan amount you need
Often, many borrowers apply for an exorbitantly high amount and get rejected on account of their personalloan eligibility. Most lenders such as SBI personal loan conduct a check of your income and repayment ability before approving your loan.
Therefore, while deciding on the personal loan amount you need, it is essential to assess your financial position accurately. Usually, a personal loan has a shorter period as compared to other loan types and hence, often comes with a higher interest rate. So, before you apply for an SBI personal loan, you should be sure of your repayment capability. Do not go for a loan amount that is beyond your affordability. Try to borrow as less as possible and keep a guard against falling in a debt trap.
Nowadays, for a better understanding of your financial position, some online platforms such as Afinoz.com have facilitated useful tools such as personal loan eligibility calculator and personal loan EMIcalculator, which will help you to apply for the exact personal loan amount that best suits your financial needs. The calculator will also help you to determine your personal loan EMI outflow every month, including the interest rate you need to pay. Using the personal loan eligibility calculator at afinoz.com is free and simple.
Opt for a longer loan tenure
Choosing a longer tenure for your SBI personal loan will help your cause. A longer tenure will convey to your lender that you possess the capability to repay the loan amount for a longer time period in the future. This will enhance your personal loan eligibility.
Check your credit score
Do have in mind that your credit score is a very important determinant for banks/NBFCs such as personal loan to gauge your personal loan eligibility and you should make a determined effort to improve your credit score all the time.
If you are not attentive of your credit score while applying for a personal loan (such as an SBI personal loan), your loan application might get rejected. Even if your loan application gets approved somehow, you may be asked to pay a higher interest rate and may be offered unfavorable terms and conditions, as compared to those borrowers with excellent credit scores.
Obtain your credit report so as to verify your credit score and rectify errors, if any. A decent credit score will significantly boost your personal loan eligibility.
Efficient online platforms such as AFINOZ.COM are there to assist you. Here you will get expert assistance regarding ways to improve your credit score, at no extra cost.
Avoid multiple applications
Applying for a loan at numerous places is not a good idea. The probability of getting your SBI personal loan application approved is less in such cases.
Also, rejection of multiple loan applications will badly impact your credit score. Every time you apply for a loan, the prospective lender generates a request for your credit report from a reliable credit bureau. This is called a “hard look” and such a report contains the date of such a request, along with a mention of the intended purpose. If multiple or simultaneous queries are generated from different lenders, your credit report will reflect details of multiple requests made within a short time period. Lenders will deem such behavior as “Credit Hungry” and this will badly impact your personal loan eligibility.
Add your commercial/ residential rental income to your profile
For a provider like the SBI personal loan, your income is perhaps the most significant indicator to assess your repayment capability. The more your monthly income is, the better you will stand when it comes to your personal loan eligibility. If you have a commercial or residential property on rent, you must add such rental income to your profile. This will prove to be a nice add-on to your income criteria.
Check your DTI
Along with your income, your debt-to-income or DTI ratio gives an important account of how much your affordability is for availing a , say, SBI personal loan. It also indicates to the lenders whether you can repay the loan amount every month and whether you are responsible enough in handling your money.
A high DTI percentage shows that you are consuming a considerable part of your income to pay your existing debts. Hence, check your DTI and if it’s over 43 %, consider paying off some of your existing debts. It will boost your personal loan eligibility to a great extent.
Provide truthful information
Personal Loan providers such as SBI personal loan verify the information provided by you through supporting documents. They may possibly give you a call to verify your information personally. Therefore, you must provide truthful information about your residential details, annual income, past loan repayments, etcso as to boost your personal loan eligibility.
Maintain work stability
Lending institutions such as SBI personal loan require loan applicants to have a stable job history. Many lenders require the borrower to have at least two years of work experience in a particular job. Thus, avoid switching jobs too frequently if you are looking to boost your personal loan eligibility. Constancy in the job helps in assuring that you have a somewhat stable source of income.
Be ready with all supporting documents
As you are aware that a personal loan is an unsecured debt, no complicated paperwork is required during the personal loan approval process. However, providers such as SBI personal loan may still need you to submit a few basic documents like KYC-complaint certificates, salary slips, address proof and bank statements.
You need to arrange all these documents and file them together in proper order so that you are ready when the loan application process starts. It is also good planning if you can clear your other pending loans before applying for a fresh personal loan and get the clearance letters from those lenders as well.
Pay your dues in time
You should take care to pay all your dues on time as your payment history takes care of 35 % of the credit score. In addition to improving your credit score, it also gives an impression to the potential lenders (like SBI personal loan) that you are quite disciplined in handling your credit. This, in turn, will boost your personal loan eligibility.
Apply for an SBI personal loan through the reliable online platform of Afinoz.com. Our experienced experts will churn out the best personal loans to suit your distinct needs and will help you to boost your personal loan eligibility with their useful insights. All our services are available to you absolutely free of cost.