A 2 Lakh Personal Loan comes in handy when you need funds to cover a planned or unplanned expense like a vacation, wedding, home repair, or medical treatment. If the current financial requirement is beyond your budget, applying for a Personal Loan can be a great option if you can conveniently repay the EMIs during the tenure. However, to qualify for a Personal Loan, you must fulfil the lender’s eligibility conditions and prove your repayment capacity. In the following sections, you will learn more about Personal Loan eligibility and find tips to improve your chances of approval.
Eligibility of a Personal Loan
When you fall short of funds and need an Instant Loan of Rs 2 Lakh, approach a lending institution to apply for a Personal Loan with quick disbursal. They assess your credibility based on several parameters, including age, income, profession, work experience, etc. Here are some basic conditions you must meet to qualify for a 2 Lakh Personal Loan at Hero FinCorp:
- Age: 21 to 58 years
- Citizenship: Indians only
- Occupation: Salaried or self-employed
- Work Experience: Six months for salaried and two years for self-employed
- Monthly Income: Minimum Rs 15,000 per month
In addition to this, you must have a decent credit score and low debt-to-income ratio to prove your creditworthiness. Although you may also qualify for a Personal Loan for low CIBIL from some financial entities, you might go through tougher eligibility criteria and pay a higher interest rate.
Tips to Improve Your Chances of Getting a 2 Lakh Personal Loan
Financial institutions evaluate various factors to determine your creditworthiness. Here are a few useful tips to boost your chances of getting a Personal Loan:
- Check Lender’s Eligibility Criteria
Before approaching a loan provider for application, carefully understand their eligibility requirements.
- Apply for an Adequate Loan Amount
Applying for the right loan amount to get your loan approved without hassle. Before applying, use an eligibility calculator to determine the loan amount you can borrow. The lender determines this amount based on income, current liabilities, credit history, and other crucial factors.
- Avoid Multiple Loan Enquiries at a Time
When you need emergency funds, you may send loan enquiries to multiple lenders to boost your chances of getting a loan approved.
Each loan application pulls a hard inquiry on your credit report. Too many of them within a short period represent credit-hungry behaviour, reducing your chances of approval. Multiple hard enquiries also reduce your credit score, further reducing your loan eligibility.
- Track Your FOIR (Fixed-Obligation-to-Income Ratio)
Using a large part of your income towards existing loan repayments reduces your repayment capacity, eventually affecting your creditworthiness to get a new loan. Even if a lender agrees to approve your loan, they may charge a higher interest rate than normal to cover up for the extra risk.
Always maintain a FOIR below 50% to improve your chances of getting a 2 Lakh Personal Loan at competitive interest rates. Consider paying off outstanding balances on your loans and credit cards to increase your chances of approval.
- Improve Your Credit Score
Financial entities pay a lot of attention to your credit rating when scanning your loan application. Check if a loan provider has a minimum credit score requirement to qualify for a loan. If you have a low credit score, look for a lender without such a clause in their eligibility criteria. You may qualify for a Personal Loan for low CIBIL from such lenders, but be ready to pay a higher interest rate for such loan plans.
Maintain a credit score above 700-750 for instant approval at the best interest rates. The higher the credit score, the higher your chances of getting the best deal on Personal Loans. Some ways to boost the credit score are paying the loan EMIs and credit card bills on time, reducing the DTI and credit utilisation ratio, diversifying the credit portfolio, etc.
- Add Your Parent or Spouse as a Co-Borrower
Opt for a loan company that allows you to include your parent or spouse as a co-applicant in the loan application. This facility is particularly helpful when you have a low income or credit score. Adding a co-applicant with a decent income or credit score will improve your chances of getting a loan approval, as it enhances your repayment capacity and lets you fetch a Personal Loan at a lower interest rate.
- Mention All Your Income Sources
When applying for a loan, mention all your income sources to show your repayment capacity. So, along with your basic income details, furnish information about all additional income sources, including rent, part-time job, hobby, freelance work, etc. Doing this will boost your approval chances for a higher loan amount and at a lower interest rate.
- Opt for a Longer Repayment Tenure
A longer repayment tenure breaks down your debt obligation into smaller EMIs, reducing your financial burden and making it easier for you to make timely repayments. It increases your chances of getting an easier approval by reducing your FOIR.
- Choose Your Loan Provider Carefully
Before settling for a loan provider, thoroughly research and compare the available options based on their loan amounts, interest rates, repayment terms, eligibility criteria, documentation requirements, reputation, customer service, etc. Even if you need funds for an emergency, avoid settling for the first loan plan you come across. Recently, there have been a lot of financial players flooding the market with competitive loan plans.
Conclusion
The above tips can improve your eligibility for a 2 Lakh Personal Loan and boost your chances of getting approval. Choose the right loan company to enjoy a seamless and stress-free experience right from application to disbursal. At Hero FinCorp, you can get an instant Personal Loan online at competitive interest rates and flexible repayment tenures without collateral.
Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader’s discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.