Personal loans are unsecured credit instruments for which you do not have to offer any collateral. This is the reason why lenders do not have anything to fall back on if you default on your repayment. Hence, they impose strict eligibility criteria on the applicants, to make sure that the borrower can repay the loan. If you are looking for quick access to funds, improving your personal loan eligibility will increase the chances of your loan approval.

Wondering how to do this? Here are some useful tips:   

Build up a high credit score 

Your credit score is the first item on your lender’s checklist when you apply for personal loan. A high score denotes that you are responsible when it comes to managing your finances and have settled earlier debts on time. A credit score of 750 and more can open the doors to many financial institutions. Therefore, pay attention to your credit score and work on improving it. Check your credit report at regular intervals and take steps to rectify errors if any.

Never fail to pay your EMIs and credit card bills

Timely payment of your existing loan EMIs and credit card bills will boost your credit score, confirming that you can repay a loan. Moreover, a substantial score increases the possibility of instant personal loan approvals.

Reduce your debt-to-income ratio

If you already own several credit accounts like multiple loans and credit cards, your debt-to-income rate will be high. In this case, servicing another loan will be difficult. Your combined EMIs should be lower than 50% of your income for a robust debt-to-income ratio. Hence, consider paying off your old loans before applying for a new one.

Minimize your credit utilization

Dividing the total credit that you have taken through all your credit cards by the total credit limit for which you are eligible will give you your credit utilization ratio. A low ratio is favorable for securing a sizable personal loan. Thus, avoid paying your bills with your credit cards.

Also, instead of paying the minimum amount due, always try to clear most of the outstanding amount to keep the ratio low.

​Mention all your income sources

Your income is an indicator of your repayment ability. Therefore, you must highlight all your income sources.

  • You can add rental income, if any, to your profile.
  • If your spouse draws a salary, you can club that income by applying for a joint loan.
  • You can also maintain an updated record of your variable pays like bonuses, commissions, and incentives to improve your personal loan eligibility.

In addition to this, you can use an online eligibility calculator to assess the minimum income required to qualify for a loan. Also, try not to switch jobs frequently as job stability indicates a steady income, increasing the chances of quick loan approval.


It is advisable to compare available offers before deciding on a lender. You can consider Tata Capital, a reputable financial institution with easy eligibility criteria. With Tata Capital, you can apply for a personal loan online and fund your needs as early as possible.