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Does Your High Credit Score Assure You with an Instant Personal Loan Approval?

Are you looking out for a personal loan? Then, you might be well-versed with the fact that your credit score plays a vital role in determining your creditworthiness. A credit score of 750 and above is considered ideal by many lenders and can more likely fetch you an instant personal loan in India with competitive interest rates. Is having a good credit score the only criteria required to approve your loan request? No! Several other factors help determine your creditworthiness, such as your age, monthly income, work experience, debt to income ratio (DTI), etc. These are all needed for personal loan approval.

This blog will further help you understand the various factors that play a role in determining your eligibility for an instant personal loan in India. With this information, you can also determine to what extent these factors influence your lender’s decision in approving your loan request:

Qualify for personal loan
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Factors Considered by Your Lender During Personal Loan Approval/Rejection

  • Eligibility criteria – One such major factor under which your loan application can be approved or rejected is based on your instant personal loan eligibility criteria. Each lender has different eligibility criteria, under which you need to qualify for a personal loan.
  • Age – While lenders have the liberty to decide on the age, most lenders will extend you a loan opportunity only if you are 21 years and older. Age is one of the parameters considered in your eligibility criteria. You can find this information precisely mentioned on your lender’s website.
  • Monthly income – The minimum income eligibility criteria vary from one lender to another. Monthly income is also one of the key parameters considered in your eligibility criteria. You must qualify for your lender’s basic income criteria to avail of a personal loan if you do not meet the minimum eligibility requirements. Then, your application may get rejected in the initial phase itself!
  • Work experience – This parameter may not be directly proportional to your loan approval or rejection decision. However, most lenders prefer that you have at least two years of experience in your current workplace. This way, your lender can determine your job stability and repayment capacity.
  • Debt to Income Ratio (DTI) – A Debt to Income ratio (DTI) is a measure that compares the amount of debt you have to your overall income. This ratio can affect your credit score and is a vital parameter considered by your lender to evaluate your creditworthiness. To analyze your ratio, your lender may ask for your proof of income to compare your debts and expenses against your income.

Suppose your amount of debt is high compared to your income. In that case, it indicates lower repayment capacity as the income you get is not sufficient to cover all your expenses and interest payments. So, a DTI ratio of 30-50% is considered healthy and can help improve your chances of personal loan approval.


The above factors collectively influence your credit appraisal for a personal loan. Your lender will assess your profile to determine the level of risk involved in qualifying you for an unsecured loan. Thus, ensure to qualify your lender’s eligibility criteria and minimize your chances of personal loan rejection.

If you are looking for a lender who can approve your loan request instantly, then consider FlexSalary. Whether you need cash on the same day, you get it. Even if you have a low credit score, you can get a loan with FlexSalary, and you can repay your loan in flexible payments.

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