Personal loan in Mumbai – 5 Factors that Lenders Consider
If you live in Mumbai and planning to apply for personal loan, you must look at 5 factors that lenders consider. Want to know more? Read on!
A personal loan is easy to acquire if you fulfil eligibility and conditions of your prospective lenders. You can also use an personal loan eligibility calculator that many online lenders offer online to know your eligibility.
You may need a personal loan in Mumbai for many reasons – renovating your home, funding your child’s education, taking a trip abroad, medical emergencies and some other needs.
Whatever your need be, obtaining a personal loan is easy these days. All that you need to do is – be eligible as per the policies of the creditors to avail it.
Nonetheless, before you decide to avail that all important personal loan, why not have a look at some of the vital factors that a lender considers.
Considering these factors will prepare you ahead of time. Because when you are aware of the elements that lenders are looking for, you will try to make it up if you need to improve.
You already know that your CIBIL or the credit score matters while applying for a loan, but that’s not the only vital factors creditors use to determine your eligibility. Here are some other essential factors:
5 factors that a lender considers for loan eligibility
1.Your income: Usually lenders prefer your monthly credit repayments to be less than 40% or so of your income.
The percentage of the monthly debt payment may differ from lender to lender, and you must check with a lender you want to apply for personal loan.
2.Your employment history: Do you love switching jobs? You may not get a personal loan. Why? It’s because of the fact that reputed lenders consider only such loan applicants who have a steady job or are consistent.
Ideally, a creditor considers a borrower is working at an MNC, private or public limited company for at least a period or 2 or more years.
However, you may also get a loan approval if your employment history is less than 2 years in some cases. But, the loan amount may remain less and the interest-rate high.
In short, if you happen to apply for personal loan, you need to be consistent in your job to get approval.
3.Your credit score: If you have a credit score of 700 or more, the chances of your loan approval at a low-interest-rate go up. If you have a low CIBIL score, some lenders may sanction your loan, but at a higher rate of interest.
Thus, if you want to avail a personal loan on a low-interest, make it a point to clear all your previous debts and apply afresh after 6 months or so.
4.Your repayment history: In addition to your credit score, lenders also look how actively you pay off your debts. If you have some unpaid debts or late EMIs, that is bound to affect your eligibility.
5.Your Equated Monthly Statements (EMIs): This is what your monthly payment has to be in order to repay your loan in a specified time frame. Combined with other factors, it will state the lender if you can afford and pay off the loan in time or not.
The Bottom Line
Now that you know the factors or eligibility criterion that lenders look up for, you can gauge if you fulfil the discussed points or not. If you don’t qualify one or more factors, you can still prepare for it so that a lender does not reject your personal loan application.
If you qualify all conditions and furnish all documents online, a known lender may approve your personal loan instantly online. You also stand to get the money in your bank account in less than 24 hours.
You can also check with your future lender if they have a fast loan approval policy or not.