Anyone can need some money for emergency purposes. For that, we often think about collecting some money through personal loan. When we think about personal loan, we start to check out CIBIL score. But do you know that to claim a personal loan, apart from CIBIL score, there are multiple factors can be involved in the process.
If you’re considering a personal loan, you should pay attention to other factors besides your CIBIL score to ensure smooth loan approval and avoid any hassles. Even if you have a high CIBIL score, if you don’t fit into the other categories, your loan is likely to be rejected. Therefore, be sure to consider these factors before applying for a personal loan.
Keep these points in mind
Fixed monthly income
Any bank requires information about your fixed monthly income before granting you a personal loan. Your monthly income ensures whether you will be able to repay your loan installments on time. Employed individuals with a fixed salary often find it easier to obtain a loan.
However, if your monthly income isn’t fixed, the bank may assume you won’t be able to pay your EMIs on time, which can lead to a reluctance to grant you a loan. Businesspeople need to show proof of their monthly income for a loan. If you’re an employee of a large company, your personal loan may be easily approved.
your age
Your current age also impacts your personal loan application. If you’re young, you may receive a loan faster. Banks tend to avoid lending to older individuals, believing that younger individuals have more opportunities and time to earn money, allowing them to repay their loan installments. However, banks tend to avoid lending to older individuals and children.
Previous Loan
If you have already taken a loan from a bank or any other place and most of your income goes towards paying the loan EMI, then the bank avoids giving you a loan.