While taking loan loan, apart from keeping the credit score better, some other important things should also be kept in mind. These include other things like maintaining an account balance.
How to apply for loan
People often take loans to meet their needs. They need it especially for investing in a house or property. Since there is a heavy amount to be paid in this case, if you are also thinking of applying for a loan, then it is very important to know some things, otherwise the loan application may get rejected.
When taking a loan, never ask details in written inquiries in several banks simultaneously. This may raise questions on your credibility. Instead, you can contact a bank agent or branch directly. Similarly, it is very important to take care of some other things as well.
Get loan from regular bank
While taking a loan, try to apply in a bank where you already have an account or FD. By doing this, there are no issues related to securities from the bank. Because you will be the regular customer of the bank concerned, they will have a good knowledge of your past records. In such a situation, the probability of the application being rejected is negligible. Also, based on your data base, the bank can also give you an additional discount on the loan.
Keep expenses below 50 percent
The applicant should maintain his bank account while taking a loan. If you are thinking of getting a loan from a salary account, then keep the expenses from it below 50 percent. Because the Fixed Obligation to Income Ratio (FOIR) of the applicant is checked by the bank. With this, the bank sees that your already going EMI, house rent, insurance policy and other payments are being spent on what percentage of the current income. If it is more than 50 percent then the risk of rejecting the application increases.
Pay attention to credit score
To get a loan, it is very important for the applicant to have a better credit score. Based on this, there is a possibility of application being rejected or rejected by the bank. So if you have already taken a loan, then pay its EMI on time. The credit score is in the range of 300 to 900, but if the score of an applicant is 700 or more, then the lenders fall in the good category.
Know this thing if you are a guarantor
If you or someone in the family has taken a loan and you are involved in it as a guarantor, then you have to be more careful while applying. Because if the loan repaying installment does not pay at the right time in the loan taken earlier, then it can have a negative effect on you. This may cause your application to be rejected.
Maintain 6-month bank record
If you are applying for a loan, then keep a good record of your account. Maintain the balance of the account from which you want to pay the loan installment. Especially keep the balance of last 6 months correct. Because the bank will decide from your previous records whether you are able to pay the loan installments or not. If your balance remains low then the application can be canceled.
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