Personal Loans have been much more popular recently as a result of the product’s distinctive qualities. Lenders of today provide Personal Loans with the newest and most innovative features to borrowers all across the nation. The growth of digitization, which has brought in novel and new features as offered by lenders, has complemented factors such as a change in lifestyle and keeping up with trends in favor of personal loans.
As a borrower, you can apply for a Personal Loan for various reasons, such as home renovation, weddings, travel, emergency medical expenses, etc. When you apply for a Personal Loan, many factors determine your Personal Loan approval. Amongst these, salary is one of the major factors that directly impact your Personal Loan approval as it is reflective of your capacity to repay the loan amount. Also, you can plan your EMIs according to your salary along with other finances.
4 Factors Other Than Salary that Determine Personal Loan Approval
Credit Score
Bureau score or credit score are the popular terms frequently used by lenders. Your credit score will indicate your ability to repay the loan. A good score will increase yo?ur chances of getting the desired loan amount compared to a poor credit score. Before your loan application, you must ensure that you have a good credit score for loan eligibility. Also, it is a good practice to check credit scores twice a year. If you check your credit score or your employer does, it is termed as a soft inquiry, and it does not affect your credit score. However, if multiple (prospective) lenders check your credit score, it is considered a hard inquiry and it adversely affects your credit score.
Work Experience
With your work experience information, lenders can easily do the background verification of the borrower. Your longer work experience means you have a stable income giving confidence to the lenders. On the other hand, a shorter or unstable work experience will impact your loan amount and hamper your Personal Loan approval.
Age
There are certain age criteria that you need to fulfil as a borrower. Most lenders have minimum age criteria between 22 and 58 years of age. Generally, a person in this age bracket is of “working age” and hence is preferred by lenders.
Tenure
Borrowers can either opt for a short-term loan or a long-term loan. Both scenarios have different consequences and impacts on the loan. Generally, a short-term loan has a lower interest rate while a long-term loan has a higher interest rate.
Also Read: What are the best reasons to apply for personal loan?
What are the Documents Required for a Personal Loan?
Now that you have understood the major factors that will directly impact your Personal Loan approval, the next step is to submit all the required documents for your Personal Loan. Below is the list you must be aware of while you apply for a Personal Loan. This is an indicative list and document requirements may vary from borrower to borrower:
- Pan Card
- Salary Slip
- Bank Statement
- Passport
- Electricity Bill
- Aadhar Card
- How to apply for a Personal Loan with creditsuccess?
- You can apply for a Personal Loan with creditsuccess by following the below steps:
Step 1: Visit the official website of creditsuccess
Step 2: Click on the other Personal Loan section
Step 3: Click on ‘Apply Now’ under the Personal Loan section
Step 4: Upload the required documents and fill out the form
Step 5: After verification of the details, your loan will be approved
Conclusion
Today, Personal Loan is easily available as several lenders are offering instant Personal Loan approval. There are high chances of misunderstanding and misusing the easy availability which can lead to heavy debt. As a responsible person, you should apply for a Personal Loan only when required. Also, before applying for a Personal Loan, you must fulfil all the requirements and procedures beforehand to avoid any hassles.
