The extent of your preparation determines your approval chances. It allows you to boost your profile and fix areas that need special attention to appeal to the lender. Read ahead to learn how to go about the process smartly to enhance your chances of approval.

Digitally native products like the FIRSTmoney personal loan by IDFC FIRST Bank can process applications with speed, often resulting in disbursal within 10 minutes. This option is designed for applicants aged 21 to 60 who maintain a stable monthly income and possess a CIBIL score of 710 or above.

How lenders assess your personal loan application

When you apply for a personal loan online, loan providers look into these key factors to establish your eligibility:

• Age

Your age helps lenders estimate your repayment window. You should ideally fall under the age range of 21 to 60 years. This working-age bracket ensures steady earnings.

• Credit score

Your credit score indicates your responsible repayment behaviour. It shows how you handled credit previously for lenders to weigh their risk interest. For instance, you can apply for a FIRSTmoney personal loan by IDFC FIRST Bank with a CIBIL score of 710 or above.

• Income stability

A stable monthly income influences your ability to repay EMIs on time. Lenders evaluate this based on your employment or business details. Personal loans for salaried individuals involve assessment of salary credits, while self-employed individuals are judged based on monthly business income.

• Debt-to-income ratio

The DTI ratio shows the extent to which your income is already committed to existing financial obligations. A lower ratio indicates sufficient capacity to take on another loan.

• Credit utilisation

Lenders look at how you use your credit. Using it responsibly shows you manage money well and are a reliable borrower.

• Loan amount and tenure

Your choice of loan amount and repayment tenure also impacts approval. They should coincide with your eligibility to ensure repayments are comfortably manageable. With FIRSTmoney by IDFC FIRST Bank, you can apply for a loan amount up to ₹15 lakhs and choose a tenure ranging from 9 to 60 months.

How to upgrade your profile before applying

Having understood the critical requirements, you can take the required steps to boost your application. Proceed with these strategies:

• Review and fix the credit score

Get a free credit score check online to understand where you stand. If your score is less than 750, you can improve it steadily by clearing pending dues, disputing errors in your credit report, etc.

• Reduce existing debt

Evaluate your current financial obligations and see where you can make changes. Repay as much as possible to apply for a personal loan online with a healthy debt-to-income ratio.

• Apply for an affordable loan

Consider your specific needs and borrow accordingly. A realistic loan amount aligns with your monthly budget and reduces interest burden. With FIRSTmoney personal loan by IDFC FIRST Bank you can borrow loan amounts from ₹50,000 to ₹15 lakh depending on your eligibility. Borrowers can further optimize their credit usage with multiple on-demand withdrawals from an approved loan offer. The interest is only calculated on the specific amount withdrawn, making it a suitable choice for those whose financial needs may fluctuate.

• Compare loan offers

Consider the varying features and benefits offered by lenders. Choose a lender like FIRSTmoney personal loan by IDFC FIRST Bank that offers low interest rates starting at 9.99% p.a., zero foreclosure charges and zero processing fee on select loan amounts to optimize on your loan cost.

• Check eligibility online

Lenders provide tools like a personal loan eligibility calculator on their website. Use it to get a realistic understanding of where your profile stands. This way, you can apply thoughtfully instead of submitting multiple applications that can impact your credit score. FIRSTmoney personal loan by IDFC FIRST Bank has a simple eligibility criteria including an age range of 21 to 60 years, a stable monthly income, and a CIBIL score of 710 or above.

Ensure smooth and accurate application process

Once you've worked on your financial profile, you can proceed with the application. Consider these aspects to ensure you go through the process smoothly:

• Provide correct and complete details

Input accurate and complete information like your date of birth, PAN and Aadhaar number, employment details, etc. Double-check for accuracy before submission.

• Follow the video KYC instructions clearly

IDFC FIRST Bank simplifies the application process for FIRSTmoney personal loan through video KYC. There are no document uploads required. Simply display your original PAN card over a video call. Ensure the internet connection is stable with a clear camera quality for a smooth experience.

• Track the application and confirm acceptance

Upon submission of the application, the tracking feature activates on the website or mobile app, where you check the approval status. Once approved, you shall receive a loan sanction letter. Go through the loan terms and accept them to get funds disbursed in your account.

Final words

Planning a personal loan application smartly involves understanding the lenders' expectations. Once you're clear on the eligibility expectations, you can take the required steps to enhance your profile. One major aspect is income, where a personal loan for salaried individuals involves evaluation of regular salary credits. Make sure your job is stable with a clear record. Likewise, improve your credit score, debt-to-income ratio, monthly budget, and borrowing choices.