Instant personal loans have the ability to finance any personal expense efficiently. And the presence of numerous lenders increases your chances to get personal loan approval in India. But the chances of rejection are still there as the collateral-free personal loan lenders will judge your credibility based on loan approval factors. And as a borrower, you must be aware of such crucial factors to get personal loan approval in India. So read on to find those facts that you should also consider before applying for loan.
Table of Contents
FAQs
- What are the vital considerable factors that lenders might think of?
- Which is the loan that can get easily approved?
- What are the criteria for easy loan approval?
- What is the loan approval process in India?
- What can be the reasons behind the rejection of the loan application?
- Which bank offers the easiest personal loan approval in India?
- What are the 6 C’s of lending?
Age Factor
Your age can logically interpret your credibility. Most lenders require their borrowers to be at least 21 years old as people start their professional careers in their 20s. And a borrower can gain income stability, security, and a decent employment history till he or she reaches his or her 30s to 40s. Besides, those are the years that a person’s income can grow more. On the contrary, in your middle age like the 50s, there is very little scope to grow financially at that time. And also you won’t be left with sufficient time to repay the loan amount. So being a personal loan applicant your age plays a vital role in your loan approval in India. Apply instant personal loan here.
Income Details
Income is very crucial amongst the personal loan approval factors in India. The requirement of minimum income may vary from lender to lender. Some may offer a personal loan at the monthly minimum income of Rs. 25,000 and some will require Rs. 15,000 per month. However, your income reflects your ability to repay a personal loan efficiently. Besides, your income should be stable and have the scope to grow more. This will indicate decent credibility to take and repay a personal loan. So the higher income increases the chances of personal loan approval in India.
Employment History
Your employment history is one of those loan approval factors that reflects your financial stability. It also defines your character to become a potential borrower in India. Now, as per the requirement of respective lenders, your employment in the present company should be old enough to apply for the loan. Besides, your professional reputation should be impressive and you should have a good prospect too. This will help in personal loan approval in India.
Credit History
Your credit history can reflect your credibility quite easily. As a good credit score is vital for the loan approval process, it also means that you have prior credit history too. Also, the repayment or the settlement history can say a lot about your repayment ability. Any default in the past repayments can easily affect your credit score and hamper your potential as a borrower. So good credit score and credit history can assure your personal loan approval in India. Check our full blog: Credit Score Checklist: How It Is Calculated?
FOIR Calculation
Credit history brings another vital loan approval factor that is FOIR or Fixed Obligation to Income Ratio. It represents how much money you pay in total as EMI out of your net monthly income. Usually, lenders do not lend or proceed loan approval process if the FOIR has reached 65% per month. It means the borrower spends 65% of his or her net monthly income as EMIs. So, it will be a wise decision to repay your existing loans before applying for a personal loan as that will lower the FOIR. And then you can increase the chances of personal loan approval in India.
The Loan Amount
Apply for a loan amount that is repayable based on your age, income, credit score, credit history, and FOIR. If the amount is not reasonable, then there are high chances of rejection of your loan application. So, calculate your repayment ability before applying for the loan. And apply for an affordable loan amount to get loan approval in India.
FAQs
What are the vital considerable factors that lenders might think of?
Whether it’s a bank or an NBFC, your lender will consider your age, income, credit score, credit history, loan amount, Fixed Obligation to Income Ratio (FOIR), etc., for the personal loan approval in India.
Which is the loan that can get easily approved?
all the loans, an instant personal loan gets easily approved due to simple eligibility criteria, the easy online application process, and the loan approval process.
What are the criteria for easy loan approval?
You’re advised to check the eligibility criteria before applying for a personal loan. And make sure that you meet the criteria for the loan approval process. The lender will evaluate your employment, credit history, FOIR, and other vital loan approval factors for loan approval in India.
What is the loan approval process in India?
After applying for a personal loan online, the lender will evaluate your credibility in terms of your age, income, credit score, credit history, FOIR, etc. If everything is good to go, then you’ll get the e-approval. Later, the submission of valid and reasonable documents will prove. And ensure your eligibility and the lender will sanction the loan amount depending on that.
What can be the reasons behind the rejection of the loan application?
Several reasons like insufficient income, poor credit score, bad credit history, low surplus income, sending applications to multiple lenders, asking for a not so reasonable loan amount, etc. can be the reasons behind the rejection of your loan application.
Which bank offers the easiest personal loan approval in India?
In India, there are multiple personal loan lenders. All of them have different eligibility criteria that will determine your credibility. To find the easiest personal loan approving bank or NBFC, you should compare them. And Roopya is the best platform to assist you to get the most affordable instant loan available in the market.
What are the 6 C’s of lending?
The 6 C’s of lending are character, capacity, collateral, capital, credit score, and condition. These are the vital loan approval factors that can help in the loan approval process.
Bottom Line
Personal loan lenders can easily approve the loan if you these loan approval factors in mind. So, apply accordingly to get instant loan approval in India. You can visit Roopya’s website to get any assistance in getting a personal loan.And let us know how helpful this article is by commenting below.
Resources
Hindustan Times, Wikipedia, National Funding.
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