Loan applications from people with poor credit histories are typically denied. A customer with a low or terrible credit score may still qualify for a personal loan for Bad credit by following a few simple guidelines. The following section will go over a few of these precautions.
Applying with a co-applicant
Most people can also apply for personal loan for bad credit with co-applicants. Most banks need co-applicants to be family members. If the co-credit applicant’s score is higher than the principal applicant’s, the loan will be approved.
Providing proof of the repayment capacity of the applicant
Loan applicants can demonstrate their ability to repay by providing documentation of their income. If the applicant can demonstrate that they have a high enough income, the lender will have more confidence in giving them a personal loan.
Improving credit score
The applicant can take some easy steps to raise his or her credit score, such as,
Payment of past debts
All future credit card bills and monthly instalments must be paid on time.
Managing one’s debt-to-credit ratio
After taking these steps, the applicant’s credit score will rise, and he or she will have no trouble securing a personal loan from any financial institution.
EMI calculator formula
The mathematical formula for calculating EMIs is EMI = [P x R x (1+R)^N]/[(1+R)^N-1] where E: Equated Monthly Installment,
P: Principal or loan amount,
R: Interest rate per month (the annual interest rate is divided by 12 to get the monthly interest rate), and
N: Number of monthly instalments or loan tenure in months.
Online payment steps
- Enter your registered mobile number.
- Enter the OTP sent to your number.
- You will receive an SMS with a set of payment options within. Select your payment mode and complete your EMI payment online.
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