Skip to main content

WHAT FACTORS ARE REQUIRED TO QUALIFY A LOAN?


In recent times, loans are availed for a variety of reasons and needs. The most popular loans in our country are Personal Loans, Business Loans, Home Loans, and Gold Loans etc. Of these, there are few kinds of loans which are unsecured and do not require any collateral to be pledged against loan money towards the lender.

On contrary, secured loans generally require collateral. So, before you "Apply For Loan" you must check whether your profile is capable of qualifying a loan. Different lending institutions adhere to differing eligibility criteria, usually considers the factors such as income, credit score, repayment capability and many more.

In this blog post, we will discuss about the loan qualification and read about the factors that must be kept in mind while getting a loan:

Credit Score: It is one of the most significant eligibility criterions that need to be fulfilled while availing any kind of loan. Before approving your loan application, every lender checks your credit history based upon your CIBIL score which indicates your credit worthiness. A good credit score plays a key role in getting your loan approved.

Therefore, a credit history is reflected through your credit score. So, make sure to maintain your credit score to get an instant approval on your loan.

Age: Your age also plays an important role in influencing your loan eligibility. Most of the banks and NBFCs that offer loans have kept their age criteria as 21 to 60 years of age. However, age can also vary according to lending institution’s terms and conditions.

Income: It is another crucial factor responsible after qualifying a loan. If you have regular and huge earnings, the chances of your repayment capacity are higher. This factor is totally applicable for both salaried professionals as well as self-employed individuals.

It is good to mention all sorts of earning sources in your loan application whether it’s part-time, freelance or rental. It will increase your eligibility and repayment capability that you can afford a loan easily.

Debt to income ratio: This ratio is expressed in percentage and is divided between your gross monthly earnings and monthly debt repayments. Every lender takes care about your debt to income ration and has a major concern, whether your monthly salary can cover the new loan repayment.

To calculate your debt to income ratio, sum up all your monthly debts and divide by your gross monthly income. Well, an average ratio that is accepted by the lender is around 35%. If your debt to income ratio lies within this percentage then there are great chances of successful approval.

Hence, it is better to pre-qualify a loan whenever it’s possible and do check with the lender what eligibility criteria to fulfill before you "Apply For Loan Online" or offline as each lending institutions has its own set of criteria. This will ensure your financial fitness to apply for any kind of loan.

Therefore, strong qualifying factors not only help to increase your chances of loan approval but also help to secure a loan with reasonable rates of interest.


Labels:

Comments

Post a Comment

Popular posts from this blog

GUIDE TO BUYING A USED CAR: FIGURING OUT INTEREST RATES

As of now, in the fast-paced universe of today, possessing a car is neither a luxury nor a need. While considering the practicality of purchasing a used car, the vast majority of individuals arrive at this resolution. In any case, financing such a purchase can be troublesome. This blog aims to impart information regarding the intricacies of used car loans, with a particular emphasis on the critical component of interest rates. What is a Used Car Loan? A " Used Car Loan " is a financial product designed to assist individuals with the expense of purchasing cars. A used car loan, in contrast to a conventional car loan for another vehicle, is designed to accommodate the extraordinary circumstances associated with purchasing a used automobile. Factors Influencing Used Car Loan Interest Rates 1. Credit Score: An essential part of loan applications, the credit score significantly impacts the interest rate determination process. Individuals must maintain a decent credit history bec
Post a Comment
Read more

EXPLORING OFFERS AND OPPORTUNITIES OF USED CAR LOAN

Many individuals instantly consider purchasing a brand-new car when they are thinking about buying a vehicle. The used car market has, by and by, as of late, acquired colossal traction. The availability of used car loans and the alluring motivating forces they give that may be of some value are two important factors adding to this development. In this article, we'll dive into the importance of used car loans and investigate some alluring " Used Car Loan " options that could be useful to you to make a financially wise choice while purchasing a pre-owned vehicle. Why Opt for a Used Car Loan? 1. Cost-Efficiency: For individuals hoping to purchase a vehicle without failing, used car loans are a financially mindful decision. While used cars have already encountered this early depreciation, new cars can lose as much as 20-30% of their value in their most memorable year. In this sense, used cars offer better value for your money, and a used car loan can assist you with getting
Post a Comment
Read more

STREAMLINING FINANCIAL ARRANGEMENTS TO APPLY FOR LOAN ONLINE

Financial requirements can emerge out of the blue in the present quick-moving world. Whether it's for buying another vehicle, uniting obligation, subsidizing a home redesign, or covering unforeseen clinical costs, a loan can frequently be a reasonable arrangement. With innovative progressions upsetting different parts of our lives, it's nothing unexpected that the getting landscape has developed too. Applying for a loan online has become progressively well-known because of its comfort, speed, and accessibility. There are different justifications for why people are choosing to apply for loans online and the advantages related to this methodology. Reasons to apply for loans online 1. Ease of Use - Applying for a loan through traditional means frequently includes different bank visits, extended paperwork, and long holding-up periods. Interestingly, the online loan application process offers unparalleled ease and straightforwardness. With only a few snaps, borrowers can get to dif
Post a Comment
Read more