Tackling your financial goals, whether they are to design your ideal kitchen or to finally pay off your credit bills, can be expensive. Taking a personal loan, on the other hand, can be helpful.
Personal loans are usually unsecured loans, meaning you do not have to provide any collateral or pledge any asset to secure the loan. This makes instant personal loans an attractive financing option for many. Since these loans are unsecured, lenders rely on various other factors to determine your creditworthiness. That’s why it is important to be in a strong financial position when you are applying for a loan.
Fortunately, there are things you could do to increase the chances of your personal loan approval. Consider these 5 tips to help.
Reduce Your Debt-to-income Ratio
To lower your debt-to-income ratio, pay off your existing loans and credit card payments before applying for a personal loan. Your present debts and credit card due dates might make you appear to be a credit-hungry borrower, making it difficult for you to obtain another instant loan.
Include All Your Income Sources
Your income is also taken into account by lenders when determining your repayment capacity. As a result, you must include your regular salary as well as all other sources of income, such as rental income, part-time income, or anything else, when you apply for an online personal loan.
Borrow The Right Loan Amount
Home Credit offers an instant personal loan up to ₹5 lakhs with easy eligibility and minimal documentation requirements. However, just because you’ve been offered a large loan does not imply you should take it all. You will be required to return the amount borrowed as well as the interest rate. The larger the loan amount you take out, the more interest you will have to pay. As a result, assess your needs and apply for a loan amount that meets them.
Make A Robust Repayment Plan
Apply for a personal loan amount that you are confident you will be able to repay comfortably and without putting pressure on your finances. Make sure your EMIs do not consume more than 30-40% of your monthly income. Therefore, lenders look at your debt-to-income ratio to see if you can manage the extra debt while staying within your budget. If your debt-to-income ratio (DTI) is greater than 30-40%, your loan application may be denied.
Make Sure You Fulfill The Eligibility Criteria
Your instant loan application might be rejected if you do not meet the eligibility criteria. Therefore, it is a good idea to double-check the personal loan eligibility criteria before applying for a loan. If you need urgent funds, then you should apply for an instant personal loan with Home Credit as it offers easy eligibility criteria and provides instant approval on a loan amount of ₹5 lakhs with just 2 documents!
Home Credit has the following eligibility conditions that are relatively easy to fulfil:
- Be an Indian citizen aged between 18 and 60 years.
- Have valid ID proof and current address proof.
- Be employed, self-employed, or a pensioner.
- Maintain an active bank account.
- Ensure a minimum 90-day interval between two Home Credit loan applications.
- Demonstrate a monthly household income exceeding ₹25,000. “Household” refers to an individual family unit comprising a husband, wife, and their unmarried children.
- Need to be an existing customer of Home Credit (should have availed Ujjwal EMI Card/ Consumer Durable Loans/ Personal Loan/ Flexible Personal Loan in the past).
So, what are you waiting for? Take the first step towards realizing your dreams with a personal loan worth up to ₹5 lakhs from Home Credit with instant approval!
