5 tips to boost your eligibility for SBI personal loan

It is well-known that the State Bank of India is the largest bank of India in several terms from market capitalization to employees. It is also popular for rendering lucrative and appealing offers on the major part of its products. Thus, if you are musing to take out SBI personal loan then you are nowhere away from a virtuous decision.

However, even if you are not musing to take out now, you should be ready with your work on some of the major elements that will make sure and boost your chances of getting your loan application approved at the time of an emergency.

Here we have come up with top 5 tips which will not only help you avail a personal loan from SBI but also boost your chances in availing loan from any other money lender. Let’s check it out!

1. Sustain a high credit score

Your credit score is a vital component to consider since it reflects your past repayments. Thereby, as higher your credit score would be as higher would be the chances of approval on a personal loan.

2. Be punctual to pay off your credit card bills and loan

When you remain punctual in paying your credit card bills and loan EMIs, it demonstrates that you are disciplined regarding your finances and this enhances your eligibility for new loans/credit cards potentially. Thus, before you opt for SBI personal loan, make sure that you have paid off all of your credit card bills and loans.

3. Lower your existing debts

If you already have debt obligations in the form of outstanding personal loans or credit card debt, it is suggested that you lower these prior to applying for new unsecured debt. This boosts your debt-to-income (DTI) ratio and thereby maximizes your eligibility for a new loan.

4.Do not apply for multiple loans

Do not apply for multiple loanswith varying lenders in the expectation of getting approved by at least one of them. This makes you seem hopeless for funds which gives a bad indication that you require over one loan to fulfil your expenses.

Furthermore, if you do not get approved for these loans, your credit score gets down and it becomes very hard to get approved for not only SBI personal loan but any other sort of credit.

5.Make a gap of at least 6 months between new loans

It is better to make a gap of at least 6 months between your loan applications. Otherwise, your moneylender will have doubt on your repayment capability. If your reason to avail the personal loan is non-emergent, await a few months prior to applying to have a better chance of being approved.

The bottom line

Personal loans are taken out by individuals and taken in use for a number of reasons, from renewing your house to going on a global vacation to debt consolidation.

They are generally unsecured which means you do not have to give collateral, further which makes them an appealing alternative for customers.

Although, the risk for lenders is greater and thereby personal loan interest rates also have a propensity to be high. Furthermore, getting approval for personal loans may be complex but by following the above tips, you can boost your chances of availing a personal loan.

Additionally, if you wish to know about SBI personal loan interest rates, you can take the help of SBI personal loan EMI calculator.