(ANI/NewsVoir) New Delhi [India], October 21: Due to the lack of collateral, one can now apply for an online or rapid personal loan in only a few quick and easy steps.
The quick loan could be disbursed in minutes if you fulfil the personal loan eligibility conditions. As a result, such loans can come in handy in the event of unforeseen circumstances or unexpected needs.
Nonetheless, it's critical to remember five aspects of the qualifying criteria in order to avoid having your loan application denied. If you meet these requirements, you may be able to get an online personal loan with favourable terms.
1. Check your Debt-to-Income Ratio
Before asking for a quick personal loan, make sure you have paid off all of your previous debts, including credit card bills. In other words, you must lower your debt-to-income ratio since lenders may be hesitant to lend if you have many financial responsibilities that impair your ability to repay. Divide your total debt by your monthly income to get this ratio.
It's critical to keep this number below 50% because a bigger proportion indicates a higher danger of default. In general, your total EMIs should not exceed 30 to 40 percent of your monthly income. If this isn't the case, consider paying off some of your debts before asking for a personal loan.
2. Improve and Maintain a Healthy Credit Score
Because personal loans are unsecured, lenders will evaluate your credit score to determine your payback capacity or creditworthiness. A credit score of 725 or higher suggests that you are a responsible borrower, while a score of 800 or above shows that you are a safe borrower. A score of less than 725 indicates that you have a spotty credit history. As a result, you'll be labelled a high-risk borrower, and your loan application may be turned down immediately. Although some lenders may still provide you an online personal loan, you should be aware that you will be charged a substantially higher interest rate to compensate for the risk of default. Most lenders use CIBIL scores, which vary from 300 to 900 points. Before taking for a personal loan, be sure you have a good credit score. You can do this by checking your credit scores on a regular basis.
3. Include all Sources of Income
Lenders look at your monthly salary to figure out how much you can pay back. As a result, it's critical to include all sources of monthly revenue, not simply your wage. Part-time income, rental income, and money from any other source are all possibilities. Personal loans are unsecured, unlike home, automobile, or gold loans, which are supported or secured by some form of collateral. As a result, lenders must be confident in your ability to make timely payments.
4. Avoid Applying Simultaneously for Multiple Loans
If you apply for many loans at the same time, lenders will be concerned about your financial status. When you apply for any loan, including personal loans, the lender will conduct hard inquiries with credit agencies in order to determine your risk of default. Multiple loan applications will result in a slew of hard queries on your credit record from lenders. As a result, your credit score will suffer because you will be perceived as a credit-hungry customer. The loan application will thereafter be rejected by the lender. Regularly checking your credit score can help you avoid such mistakes.
5. Choose a lender with Suitable Eligibility Criteria
Don't send your loan application to a bunch of different lenders in the hopes that one of them would accept it. Keep in mind that different personal loan lenders have varying eligibility requirements. It's best to compare your personal loan eligibility criteria to those of each lender ahead of time and choose the one that best fits your needs.
Clix Capital, for example, has eligibility criteria that are comparatively easier to meet: the applicant must be between the ages of 25 and 58, have a minimum monthly income of Rs. 25,000, have worked for the current employer for at least six months, and have at least 12 months of work experience in the current field. If these requirements are met, the loan application procedure can be finished quickly by having your required documents verified online.
In other words, knowing the conditions before asking for a loan improves your chances of getting approved. If you match the qualifying requirements, you may also be offered a lower interest rate and more flexible terms.
Clix Capital is a new generation of non-bank financial institution (NBFI) that is reinventing the lending industry by providing distinct digital lending solutions that are powered by technology and deep analytics. Personal loans, MSME loans, healthcare loans, and mortgage finance are among the services it provides to a diverse variety of consumers in the MSME and consumer segments.
Clix was formed by industry veterans Pramod Bhasin and Anil Chawla, and is supported by AION Capital Partners Limited (an subsidiary of Apollo Global Management, LLC, one of the world's leading alternative investment managers with a $433 billion AUM). Mr. Chawla was the former CEO of GE Capital India and Asia's Commercial Finance Business. Mr. Bhasin is the founder of Genpact and the former CEO of GE Capital India and Asia.
In September 2016, Bhasin, Chawla, and AION purchased GE Capital India's commercial lending and leasing business and renamed it Clix Capital.
Conclusion
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