Easy Tips to Improve Your Chances of Getting an Online Personal Loan

​Getting a personal loan has become a lot easier with the rapid digitisation in the country. Most financial institutions now offer this loan online allowing borrowers to fulfill their short-term, emergency expenses. This makes it very easy for borrowers to take a fast personal loan online. All borrowers need to do is meet the eligibility criteria.

How to Increase Personal Loan Approval Chances?

1. Meet the eligibility criteria: Borrowers need to meet the eligibility criteria set by the borrowers such as being an Indian between the age of 20-60 years, being a salaried professional, and having a minimum net monthly income, along with a few other criteria set by the lending institution. 
   
2. Have a CIBIL score of 750 or higher:  Your credit score is one of the first things the lending institution checks while processing your loan application, having a CIBIL score of 750 or higher increases the chances of getting your loan application approved.
   
3. Keep FOIR below 50%: FOIR is the ratio between your net monthly obligations and your net monthly income. A FOIR below 50% shows you’re financially capable of paying out the loan interest and have a strong financial backing, thereby increasing your credit worthiness. 
   
4. Keep all the required documents ready in advance: Most NBFCs require necessary documents like 
   

• ID & Address proof
  
• Bank statements along with proof of income
  
• Bank account details for past three months
  
• Tax returns for past one year
  

Upon presentation of these documents, NBFCs like Bajaj Finserv offer personal loan for salaries for amounts of up to Rs.25 lakh at the best rates of interest. 

1. Avoid multiple applications: Applying for loans from multiple NBFCs show that you’re desperate for funds and may not have the financial capabilities to pay out your loan interests, which can decrease your online credit score and therefore get your loan application rejected. Therefore, it is advised to wait for at least 6 months before applying for a new loan application. 
   

Keeping these five tips in mind before applying for a fast personal loan online will increase your chances of getting your loan application approved.