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New Delhi30 minutes ago
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People usually take personal loans when they need money. But getting this loan is also not easy. Banks or non-banking financial companies (NBFCs) take into consideration many things about an applicant before lending to any person. If none of these are correct then your application may be rejected. We are telling you about 5 such things on which your loan approval depends.
CIBIL score must be good
The CIBIL score indicates the credit history of the individual. In the case of personal loans, the banks definitely check the applicant’s civil score. The credit score is determined by several specific credit profiling companies. In this, it is seen that you have taken a loan before or have used credit card etc. The credit score of any person is reflected in the repayment history, the ratio of credit usage, the timely payment of existing loans and bills. This score is in the range of 300-900, but the score of 700 or more is considered good by the lenders.
Don’t apply too much
Personal lending banks or non-banking financial institutions (NBFCs) check your credit history before approving your application. In such a situation, if you have applied in many banks, then your application can be rejected. So avoid applying for loans in multiple banks simultaneously or too much.
Take care of fix oblations to income ratio
When we apply for a loan in the bank, the bank also checks the Fix Obligation to Income Ratio (FOIR). This shows how much amount of loan you can pay each month. FOIR shows that your already going EMI, house rent, insurance policy and other payments are about a percentage of the current income. If the loan donor incurs up to 50% of your salary on monthly expenses, then he can reject your loan application. Therefore, keep in mind that your EMI amount should not be more than this.
Changing jobs frequently may be costly
If you change job frequently, then it is also not right for your personal loan application. Frequent job changes are considered a sign of unstable career and hence giving personal loans to such individuals is considered a bit risky. This reduces the chances of getting a loan.
Applying to the concerned bank will be correct
If you do not have regular income or poor credit score, then you should apply for a loan in the same bank where you have an account or fixed deposit (FD). If you apply for a loan from the same bank, then getting a loan can be easy.