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HOW YOU CAN QUALIFY A LOAN FOLLOWING SIMPLE TIPS?


In recent times, loans come in handy in the time of financial requirement or crunch. The benefits offered on loans by the lenders such as quick approval higher loan quantum and multipurpose end-use makes it an ideal choice for many borrowers. Most of the loans are unsecured and do not need any collateral so they require other factors at standard to "Apply For Loan".

There are several factors that every lending institution assessed to avoid the default risks and to analyze the repayment capacity of the borrower. Therefore, it is significant to know about such elements which have an important role in availing a loan at affordable rates of interest to meet your financial needs. Here, we jotted down some of those elements to qualify a loan easily.

Keep up a good credit score: A good CIBIL score always play a great role between your application being rejected or accepted. One can calculate the credit score based upon borrower’s repayment history, credit utilization as well as debt to income ratio. Individuals who keep up a good credit score often enjoy quick approvals on their loans and grab competitive interest rates on it.

A person can maintain his/her score by paying the credit card dues and EMIs in full that also on fixed time. Moreover, person needs to keep their debt to income ratio less than the 40%.

Mention all income sources: Every lender needs to know about all of your income sources to feel confident about your repayment capability. So, it is good to include all the sources such as rental income, part-time business etc. to give a comprehensive view to your lender.

A repayment capacity is always a critical element so include all the possible income sources to gain an increased sense of confidence from the specific lender.

Job history: We already mentioned about unsecured loans that they don’t require any collateral so lender relies on other metrics like employer reputation, your job history and experience at the time of sanctioning your loan application.

Any salaried individual who’s working in a reputed organization and has a great job history can avail a loan at much lower rates of interest as it makes the lender more secure of your repayment ability.

Low debt to income ratio: It is always good to maintain a low debt to income ratio for unsecured loan application to be approved. One must ensure that their total EMI does not cross 40% of the total earnings. The other important thing is to clear all the existing dues on your outstanding EMIs and credit card dues before you "Apply For Loan Online" or offline to fulfill your needs. It will help you to manage your debt to income ratio.

Hence, following such tips will help you to get a loan in a quick and stress-free manner at an affordable rate of interest. ShubhBank can help you to get such loans at ease and let you make use of 100% online application process with nominal documentation as well as quick approval.


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