3 Ways to Ensure Your Eligibility for an Online Loan

As you may know, taking out a personal loan has become a common way for young, salaried professionals to meet any financial emergency. This is due to many factors, but the two main reasons people opt for a personal loan are the convenience offered and the fact that it is unsecured. Since banks and other lending institutions don’t monitor how you use the funds, you can use it to cover practically any need, ranging from renovations at home to paying medical bills. But all of these advantages won’t amount to anything if you aren’t eligible for a loan in the first place. Since most banks and lending institutions have an online presence now (through an app or website), personal loans are also called online loans.

Here are three tips you can follow to make sure you’re eligible for an online loan. Read on:

1. Maintain a Steady Employment Graph

When it comes to approving your application, lenders will definitely check your capacity to repay your loan. How do they do that? By looking at your creditworthiness, of which the monthly salary that you earn plays a big part. So, it is imperative that you show your lenders a steady monthly income, so that they are convinced by your ability to pay off your loan EMIs regularly and on time. For this, it is not enough that you keep your current job. You need to think long-term, and show a steady career graph. Ideally, there should be no gaps in service or frequent changes in your job over the years.

2. Check your Credit Report Regularly

If you know what your credit score is, you also need to know what your credit report is. Your credit score, which denotes your creditworthiness and financial standing, is only a part of your credit report. This detailed report contains your complete credit history, which is prepared by a credit bureau. Banks and other financial institutions then use your credit report to ascertain your creditworthiness. Therefore, it makes sense for you to read up on your credit report and check for any inconsistencies, in case you want to apply for an online loan. Ideally, you need to do this every month or two, so that you’re updated on your financial standing.

3. Keep Your Debt Levels in Check

If you want to get an online loan easily, it is a good idea to keep your debt levels in check. While approving your loan application, banks usually check your debt to income ratio. This ratio is a way they measure your ability to make your monthly loan repayments on time. The lower the number, the more flexibility you have in making your payments, which will reflect well on your online loan application.

In Conclusion

We hope that the above points will help you the next time you need an online loan. Speaking of online loans, KreditBee is a good personal loan platform you can check out if you’re in the need for urgent cash. You can avail up to Rs. 3 Lakh with the funds disbursed directly to your bank account. There’s no need for you to step out of your home, thanks to their 100% online process. All you need to do is download the KreditBee app, complete your profile, and leave the rest to us. If you wish to learn more about our loan products, write to us at [email protected] or simply call +080 44 292 200.