Are you ‘loan eligible’?
Loan basically means a sum of money borrowed from the bank and the same have to be repaid with some interest rate. There are several factors to be kept in mind while applying for the Loan. The bank only checks whether you will be able to repay the loan or not.
The bank will check various proofs to check your loan eligible to repay the loan. For identification purposes, your few documents such a salary slip, property papers, credit history, current asset, education, and experience are the parameters to be checked.
The traditional bank relies on the relationship with their client as they have trust and previous experience with the client. However, the new generation bank sticks to their norms and do not entertain such things.
Bank will look for your credit history like the handling of credit cards, repayment of the previous loans. The database of each person is maintained by the Credit Bureau of India Ltd (CIBIL). You can learn how to access and check your credit score.
To increase your loan eligibility, the following things should be kept in mind:
- Clubbing Income – Income of your spouse can also be added while taking a loan if your salary is less. You both can jointly take the loan.
- Increasing Tenure – If the EMI is more and you have a problem in repaying it. Opt for a longer tenure.
- Additional Income – To enhance your loan eligibility you can club your rental income from property or any other source like business etc.
- Step-up loans – A step-up loan is a type of loan in which the initial EMI’s are less, and it increases on a monthly basis. This is made on the condition if presently your income is less but you are sure that your income will be hiked. So you can go for this type of loan.
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