You must know that loan eligibility is a very important factor and there are several ways to judge your eligibility by a lender. So, how nice it would be if you knew how to increase your loan eligibility. There are some very useful and simple ways to do it. You can go for a loan which has a longer tenure which will help you to get a higher loan but pay the same equated monthly installments. You can also prepay your existing loan, if there is no penal charge for it, and save a lot of money or decrease the EMI of it by increasing the tenure. To increase your loan eligibility you can include your parents or spouse to increase the source of income and lastly add any other source of income or bonus. Let us discuss it one by one.
Extended Loan tenure
If you want a loan then it is always better to go for a loan which has longer loan tenure. As the EMI of any loan depends on the factors like your loan principle, rate of interest and the loan tenure, the shorter the loan tenure more will be the EMI. You cannot change the loan principle and the rate of interest as it is not in your hands but you can surely choose for longer loan tenure. If you extend it then it gets spread over the period and therefore brings it down considerably. This way you can be eligible for a higher loan amount even.
Pay Off Existing Loans
This also is a very useful way to increase your loan eligibility and had two effects on your credibility. When you pay off your existing loan completely your creditor is compelled to think that you have the ability and also the willingness to pay off your debt at the earliest. The other benefit of it is that you save a lot of money with which you can pay off the higher debt. As the bank and the lenders considers all your current debts too while considering your eligibility, the fewer debts you have against your name is better for your debt to income ratio.
Decrease EMI Of Other Loans
When you decrease the EMIs of your other existing loans by increasing the tenure of it you can show the bank that you have higher amount in hand available to you. But you must check with the bank and their policy as some banks can calculate your eligibility on the outstanding loan amount and not on what EMI you are paying each month. You can also increase the income by adding your parents and spouse with the application provided they have all the income proof and ITRs to support their income stability.
Lastly Add Any Bonus
It is also useful to mention any bonus or dividends or maturity amount that you are supposed to receive in the future which will also increase your income source. Income from rents, income from investments and all can also be included. You can check online to know more about the different sources which you can add with your application to show more income.
If you are using many credit cards and are just under the burden of credit card debts then in today’s time the best way to tackle the situation is to consolidate credit cards. This will help you in making things simple for you and can clear your debts in an easy and systematic manner.
