Understanding loan eligibility
What lenders typically look at when you apply, and practical steps to strengthen your application.
Repaying a loan comfortably is as much about habits as it is about the interest rate.
Keep the EMI comfortable
Choose a tenure where the EMI leaves room for savings and emergencies. A slightly longer tenure can be safer than stretching your budget.
Automate payments
Auto-debit on a date shortly after your salary credit reduces the risk of missed payments and late fees.
Prepay when you can
Part-prepayments reduce your outstanding principal and therefore the interest you pay over the rest of the loan. Check your loan agreement for any prepayment terms; rules on prepayment charges differ by loan type and lender.
Review once a year
Look at your outstanding balance, rate and remaining tenure at least once a year, and consider whether a rate revision or balance transfer makes sense.