1.Maintaining a credit score of 750 and above

To increase personal loan eligibility, aim for a credit score of 750 or higher. This score assures lenders of your creditworthiness and responsible financial behaviour. Regular, on-time payments and low credit card balances contribute to maintaining a strong score. Monitoring your credit score regularly helps spot issues early, allowing you to take action before applying for a loan.

2.Reducing debt-to-income ratio

Lowering your debt-to-income ratio, ideally below 40%, makes you a more attractive loan candidate. This ratio indicates the percentage of income spent on debt repayments. Reducing it involves paying down existing debts and possibly increasing income. A lower ratio shows lenders that you have sufficient income to manage new debt, enhancing your loan eligibility.

3.Clearing existing debts 

Paying off existing debts improves loan eligibility by reducing your financial liabilities. Clearing high-interest loans first can be beneficial, as it lowers your overall debt burden. By settling current obligations before applying for a new loan, you present a more favourable financial profile to lenders, indicating you’re capable of handling additional credit.

4.Avoiding multiple loan applications at once 

Avoid applying for several loans within a short timeframe, as it can harm your credit score. Multiple applications signal to lenders that you might be struggling financially, potentially lowering your eligibility. Instead, focus on applying for one loan at a time, allowing for a better credit profile and stronger loan application.

5.Opting for a longer tenure

Choosing a longer repayment period reduces monthly payments, which lowers the debt-to-income ratio and increases eligibility. This signals to lenders that you can manage the loan comfortably. However, while longer terms can improve approval chances, they might also lead to higher interest over time, so balance your choice with overall repayment costs.

6.Having a stable job

Stable employment, especially with a reputed organisation, assures lenders of your repayment ability. Lenders see long-term, consistent employment as a sign of reliability, often favouring those with several years at the same job. A steady employment history reduces perceived risk, making you a more attractive candidate for a personal loan.

7.Increasing your sources of income

Diversifying income, such as through part-time work or passive investments, demonstrates enhanced repayment capacity. Additional income streams indicate financial stability, reassuring lenders that you have the means to repay the loan. Documenting all income sources during application helps lenders gauge your true earning potential, improving your eligibility​.

8.Providing accurate personal details when applying 

Accuracy in personal and financial information builds trust with lenders and streamlines the loan process. Double-check details such as income, employment and contact information, as discrepancies can delay or even deny loan approval. Providing thorough and correct details, including any additional income sources or assets, helps lenders assess your full repayment capacity, improving eligibility​.