Borrowing finance using options like a personal loan can involve a lot of planning. It is mostly because we do not have all the relevant information about how these financing services work. This can also result in the rejection of applications for borrowers.
In case you are new to the process of applying for a quick personal loan, then this article is a must-read for you. It will take you through five factors that can have an impact on your loan application.
In other words, keeping these factors in mind and following through can also result in an approved application. Hence, continue reading!
1. Applicant’s Age
One thing that should always be taken care of when it comes to a personal loan is the eligible age bracket of the applicant. If you are not of the correct age, then you will not be able to meet the personal loan eligibility criteria set by the financing firm. Therefore, make sure you cross-check with the organization whether you fall under the eligible age bracket or not.
2. Work Experience
Another thing that can have a great effect on your personal loan application is your work experience. This financing service is mainly offered to salaried employees. Therefore, understanding their work experience in the field is important for financing companies. The more experience you have, the better are your chances of getting approved for the loan.
3. Job Stability
If you are someone who keeps on changing their job every few years, then you might face a little problem to get your personal loan application approved. Job stability might not look like a big problem for you, but it is for financing agency that is going to give you funds. It is because if you leave your job and do not get a new one for a long period, then you will have trouble paying your monthly EMIs.
4. Monthly Income
The monthly income that you receive is also considered by the lender while you are borrowing a personal loan. Your income stability can also influence the interest rates that you receive by the financing company. Thus, you should always be careful about this point.
5. CIBIL Score
Credit or CIBIL score can not only help you get instant personal loans but can also allow you to shop around in the market. If you have a good CIBIL score, then there are more options available for you when it comes to financing alternatives. However, clearing your past dues can help you improve your CIBIL score significantly. In case you don’t have a good one already.
6. Existing Due
If you are someone who has borrowed loans in the past or has multiple credit accounts open at the same time, then it can be difficult for you to borrow additional finance. In such cases closing your existing credit accounts can help you get your personal loan application approved. However, you need to strike a balance between closing your credit accounts and doing it too fast. This is important to stay away from a financial crisis.
7. Debt To Income Ratio
Lastly, the debt to income ratio of an applicant can also affect their personal loan application. If your debt is at par or more than your income, then you will not be eligible to borrow financing services. The reason behind it is that you will not be unable to pay monthly EMI, which can be risky for the creditor.
Bajaj Finserv can give you the option to borrow finance for services like personal loans, business loans, home loans, and more. It even has multiple pre-approved offers available to facilitate the loan processing and make it hassle-free.
To unlock your pre-approved loan offers, you can submit your contact information and name today.