A personal loan is one of the most popular unsecured loans due to ease of borrowing and relatively low-interest rates. It can be used to cover personal expenditures such as emergency hospitalization, home expenses, etc. 

Even with a low salary, a personal loan can be availed using certain precautions beforehand. Here are five ways you can increase the chances of your personal loan getting approved.

• CIBIL Score

Before taking a loan, it is important to check your CIBIL score since financial institutions usually base their decision to approve a loan on this. Therefore, a score lower than the minimum threshold may decrease the chances of you getting a loan.

• Income

If you are wondering how much loan I can get, it is based on multiple factors such as your income, CIBIL scores, and general ability to repay a loan. However, to get your loan approved, it is beneficial to have a steady income. Therefore, employment status and income status are important for financial institutions to check your ability to repay the loan.

• Joint Personal Loan

If you fall short on the eligibility criteria to avail of a loan, it may be very helpful to have a co-applicant. If you can split your loan burden with a co-applicant, perhaps with someone with a better income profile, the credit risk is reduced, and the financial institution may have a higher tendency to approve your loan.

• Income-to-debt ratio

If you have a low salary, a personal loan can still be availed, but your income-to-debt ratio may have a role to play in this. The Income-to-debt ratio is your monthly debt divided by gross monthly income. For higher chances of your loan getting approved, less than 40% of your income should be used for EMIs.

• Multiple applications

So, how much loan can I get?

No matter how worried you are about that, do not apply for the same loan with different lenders. This might reflect poorly on your financial condition and credibility.

Despite the ease of availing of a personal loan, it is ideal for keeping these pointers in mind to ensure success in terms of loan approval.

Must Read: 5 Factors that Affect Your Personal Loan Interest Rates