Personal loans are often a smart option to help you lessen the burden of your finances. Instead of using all your savings you can avail a personal loan for the financial aid that you need. Yet to apply for a personal loan, there are a few things which you need to keep in mind. This includes the amount which you can borrow from the lender. Every lender has a different range of lending. Let’s look at all the factors you should consider when you decide on your loan amount.
Borrow Only What You Need
When you start planning to avail a personal loan, you should ideally only borrow the amount that you need. If you borrow extra then this starts a chain of events where everything increases from your personal loan interest rate, tenure, EMIs etc
Consider your Financial Situation
You need to look at your finances before you decide on a loan amount. You need to see if you are capable enough to repay that amount and also if you have any other ongoing debts to pay for.
Borrow only as much you can repay
You need to check whether your current income can support you to repay the loan amount. Your debt-to-income ratio (DTI) can help you check this. You can get your DTI by dividing your total monthly debt obligation by your net income.
No Other Debts
It is unsaid that when you apply for a personal loan, you should not have any other kind of debts to pay for. If you do have a few debts to pay, then you need to calculate your loan amount accordingly.
Each lender has a different range of minimum and maximum loan amount which they can lend. Indiabulls Dhani offers instant personal loans in the range of Rs 1,000 to Rs 15 Lakhs.
As you fix a loan amount and do the application, you need to make sure if you meet the eligibility criteria set by the lender. The criteria have the following parameters:
- Monthly Income
- Work Experience
- Credit History
- CIBIL Score
- Debt-to-income ratio
Here we share a few tips on how you can increase your chances of loan approval.
- Know the eligibility criteria beforehand and aim to meet all of them
- Maintain an impressive credit score
- Avoid multiple applications at the same time
- Choose the loan amount after a thorough thought process
- Make sure you do not have any other debts when you apply for the loan, if you do then it will lessen your chances for approval
Availing a personal loan is an easy solution to your financial woes, given that you have the capacity to repay the loan. Personal Loan EMI calculator is a handy tool to get an approximate amount of your monthly EMIs. this helps you in deciding the loan amount and gauging whether you can repay the monthly EMIs accordingly.