Friday, January 31, 2014

How to Be the Ideal Choice For Approval for Your Personal Loan
There are times when our requirement for money surpasses other requirements, whether it's a pending payment or a much needed vacation. Availing easy personal loans is not a big deal anymore, but being eligible for it is indeed a big one. Everybody seems to want a lump sum of money at some point of time! But, the underlying question is, whether will they able to pay it all back within the stipulated loan tenure? In order to make a good judgment of the repaying capacity, every bank puts forth several strict conditions that need to be met by the customers so that they can easily avail unsecured loans.

That is precisely the point, since personal loans are "unsecured" (as in there are no guarantors required), it is all the more necessary for banks to go ahead with a thorough check up. The eligibility criteria revolve around four main aspects namely,

Income - Different banks have different income criteria, and on the basis of your income, banks evaluate your maximum loan eligibility amount. One must know that if you need a maximum loan amount, different banks will provide different maximum eligible amount. So choose the right bank for an optimal loan amount.

Is your company approved by bank? - Each bank have their own categories of companies, depending on the company category a customer belongs to, he or she is rated as either high risk or low risk of defaulting. In case the company is not listed or approved by the banks in any of their categories, a separate procedure is followed to include that particular company in the bank's list.

Residential Stability - It is important that you reside in your own accommodation or at least with your parents. If you happen to reside in a rental or hostel accommodation, then you would have to show a stability of at least 1 year in order to increase your chances of approval.

Income and Work Experience - More your work experience, better is your financial stability & less chance of defaulting your loan. That is the policy banks go by.

CIBIL Score - Ensure you have a positive credit history, and have never defaulted on paying your emis or credit card bills. This will ensure you have a decent CIBIL score in order for banks to even consider your loan application. The ideal score is expected to be above 750 for every customer.

Although there are other factors influencing the decision of your loan approval, fulfilling the above four conditions is more important than anything else. Do your homework and be informed of the changes in criterion as they are subject to change without notice. Enjoy the benefits of easy personal loans, by following the procedures and avoiding errors as much as possible.

For starters, visit our site you will find a whole lot of details on personal loans

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