Personal loan is an unsecured loan. This means you do not need to pledge any collateral to avail the loan. Most leading financial institutions and NBFCs offer lower Personal loan Interest Rate If you have good CIBIL score and amount based on individual loan application and their criteria.
1) Credit Score
Having a good credit score of 750+ or more can greatly improve your chances of availing a personal loan. With this the lender can gauge your credit worthiness and thus will be more willing to trust you if you hold a good payment record. However, if your score is bad or poor you must continue to pay off your debts and bills on time. Overtime your efforts will show positive impact on your score.
2) Consistent Income
Whether it’d be a job or business make sure to have a consistent source of income. This will give an idea to your lender that you are capable of paying off the loan on time. Besides, you can avail a higher loan amount and lower interest on a higher income slab.
Additional Reading: 4 Ways to Increase your Chances of Getting a Personal Loan
3) Experienced Lender
Though the loan market is flooded with several lenders it is advisable to opt an experienced lender such as a NBFC. They offer custom, specialized loan schemes to its borrowers with pre-approved offers to maximize benefits from the loan.
4) Apply with a Co-Applicant
If your credit score is below 750 you can always apply with a co-applicant. This can be your spouse or family member with a source of income. This will increase your chances of availing a good loan amount at affordable interest
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.