A personal loan is one of the most popular financial products in India. It is a quick and easy way to meet urgent financial needs, whether for medical emergencies, home renovations, weddings, or vacations. However, getting a personal loan approved depends on your personal loan eligibility. Lenders evaluate several factors before approving your application. If you are planning to apply for a personal loan, here are some useful tips to improve your personal loan eligibility.

1. Maintain a Good Credit Score

Your credit score is one of the first things lenders check when evaluating your personal loan application. A credit score of 750 or above is considered good and improves your chances of loan approval. To maintain a high credit score, ensure you pay your credit card bills and EMIs on time. Avoid defaults and limit your credit utilization to less than 30% of your total credit limit.

2. Provide Proof of a Stable Income

Lenders assess your repayment capacity based on your income. A higher and stable income makes you a low-risk borrower. If you are salaried, submit your salary slips and bank statements. If you are self-employed, provide your income tax returns and audited financial statements. Having a steady job or consistent business income can enhance your personal loan eligibility significantly.