Home » Unable to get a loan? Follow these tips to enhance your loan eligibility – Money News

Unable to get a loan? Follow these tips to enhance your loan eligibility – Money News

by UNN Feed

Struggling to secure a loan in India can be a frustrating experience, especially when you need financial assistance for essential expenses or investments. However, being denied a loan doesn’t mean you’re out of options.

By taking proactive steps to improve your financial profile and demonstrate creditworthiness, you can increase your chances of becoming eligible for a loan. Here’s a guide to help you enhance your loan eligibility and access the funds you need:

Understanding Your Credit Score

Before applying for a loan, it’s essential to understand the role of your credit score and how lenders evaluate your creditworthiness. Your credit score, typically ranging from 300 to 900, reflects your credit history and repayment behaviour. Lenders use this score to assess the risk of lending to you. Check your credit score regularly through credit bureaus and review your credit report for any errors or discrepancies.

Adhil Shetty, CEO, Bankbazaar.com, says, “A higher credit score indicates lower credit risk and increases your chances of loan approval. If your credit score is low, focus on improving it by paying bills on time, reducing credit card balances, and avoiding new credit inquiries.”

Also Read: Mutual Fund Investment: How to determine the ideal SIP amount for investing in FY2024-25

Managing Your Debt-to-Income Ratio

Lenders also consider your debt-to-income (DTI) ratio when evaluating loan applications. DTI ratio measures your monthly debt payments relative to your gross monthly income. A lower DTI ratio signals to lenders that you have sufficient income to manage additional debt responsibly. To improve your DTI ratio, focus on paying down existing debts, such as credit card balances or personal loans. Avoid taking on new debt before applying for a loan, as it can increase your DTI ratio and raise concerns for lenders. Additionally, consider increasing your income through side gigs or part-time work to lower your DTI ratio and strengthen…

Read the full article here

Have information to send to Urban New Now? Contact our reporters. Advertising inquiries? Contact us. Opinions? Email us.

You may also like

About Us

Urban News Now is your number one website for the latest news affecting the Black community. Follow us now to get the news and updates that matters to you.

Feature Articles

Subscribe to our newsletter to get the latest news and updates. Let's stay updated!

Copyright © 2023 Urban News Now – All Right Reserved

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More