An ideal way to deal with a financial crisis is a personal loan. Whether you are a salaried employee or a businessman, the need for an instant fund is evident with a personal loan apply online. If you are stuck with some emergency at the end of the month, or when you don’t have enough funds to find a solution, you can always get an instant personal loan from NBFCs like Bajaj, Clix Capital etc.
They will give you a paperless borrowing experience with no need for branch visits. It is an affordable form of loan with a low rate of interest and minimal charges. Not only this, a personal loan is unsecured and will not require you to pledge any of your security or property as collateral.
It is perhaps one of the best financing solutions without any end-usage restrictions. While some people use it for daily needs, some for medical emergencies, and others take a trip to the nearest hill station.
However, above all, the eligibility criteria. Since a personal loan is an unsecured loan, the eligibility criteria is high. One has to meet the demand of several factors to get a personal loan approved. There are a few factors that are considered important by financial institutions. If you are trying to get approval, you need to make sure you are working on these 5 factors.
- Have a balanced debt to income ratio: An instant personal loan is always a suitable financing option as it does not impose the burden of a collateral or any end-user restriction. Therefore, it is the most popular form of loan taken by both salaried and self-employed individuals. It is important for a borrower to meet the debt to income ratio. This ratio speaks about the percentage of salary that an individual uses to pay off his debt. If an individual pays more than 60% of his income in paying debt, it is not a good sign. The ideal debt to income ratio is 30%. If you use up 50% of your income on paying debt, you can not adjust another debt because you already have fixed expenses and emergencies to handle. You need to maintain a good debt to income ratio of 30% to get an easy approval.
- Credit score: A credit score is very important when borrowing. Credit eligibility speaks a lot about the past debt repayment track record and payment habits of an individual. Therefore, an ideal score is always expected from a borrower. If you need a quick personal loan, you need to have a credit score above 750. This score represents the borrower as a valuable business or asset to the loan provider. It is important for a borrower to maintain a good score as it represents the credit eligibility and financial habits of an individual. Based on the credit score, the loan provider decides the fate of loan applications. You must meet the eligibility to get an easy approval. Individuals with a good credit score are always an asset or business for the loan providers. Try on habits like regular payments, old credit age, no outstanding bill amount and not applying for multiple lines of credit with a good credit mix.
- Increase your income: Income affects debt repayment directly. The loan providers are only concerned about one thing, and that is debt repayment. Based on this doubt, the credit eligibility and various factors are checked before approval. Income stands to be the most important aspect. An individual with a low income will never be trusted by the loan provider. There are fixed obligations, utilities, and expenses that are done already from income. It becomes difficult to manage debt with a low income. Increase your source of income by generating side income or any extra form of income so that you can convince your loan provider.
- Income stability: Whether you are salaried or in business, your source of income should be a stable one. This is why a permanent position in employment is a desired one so that the chances of job loss are not there. For businesses, the income should be stable so that the borrowers are able to pay the EMI on time without failure or delay. The source of income should be a stable one.
- Documentation: Make sure you have all the important documents. It is important for you to have all the documents in the right order without even missing one. This will initiate your process quickly and you will get approval on the very same day, if you are applying with Bajaj or Clix Capital. So, before you think of applying for a personal loan, make sure you check out the list of documents needed and make the arrangements.
Finishing up:
With NBFCs, your personal loan apply online process will be paperless, smooth and affordable. If you need an affordable instant personal loan, make sure you use the personal loan calculator available on the online website. It will help you make the right decisions regarding borrowing with easy and accurate calculations.
