Wondering why your loan application got rejected or approved with high interest? Loan eligibility is not just about your income — it’s about your overall creditworthiness. Lenders assess multiple factors before approving a loan. At Vizzve Finance, we help you understand what truly matters and how to increase your approval chances smartly.
✅ Key Factors That Affect Loan Eligibility
1. CIBIL Score / Credit Score
Your CIBIL score is one of the most important factors. It shows your creditworthiness.
750+ = Excellent (Higher approval & lower interest)
650–749 = Fair (Eligible, but might face higher rates)
Below 650 = Risky (Loan may be rejected or approved with high rates)
Tip: Regularly monitor and improve your score using Vizzve’s credit tracking tool.
2. Income Level & Employment Stability
Lenders check your monthly income, job type (salaried/self-employed), and employer reputation.
Higher income = Higher repayment capacity
Stable employment = Lower risk for the lender
Tip: Submit additional income proof like rent or freelance income if available.
3. Debt-to-Income (DTI) Ratio
This is the percentage of your income already going towards EMIs.
Ideal DTI: Below 40%
High DTI suggests over-borrowing and may lower eligibility
Tip: Pay off small loans or consolidate debt before applying.
4. Loan Amount & Tenure
Your eligibility depends on how much you borrow and for how long.
Higher loan amounts require stronger credit and income
Longer tenure may reduce EMI burden but increase interest
Tip: Use Vizzve’s Loan Eligibility Calculator to find the right amount and tenure.
5. Age and Profile
Lenders prefer:
Salaried professionals aged 24–60
Business owners with stable cash flows
Too young or close to retirement? You may be considered high risk.
6. Existing Liabilities and Credit Mix
Having too many active loans can lower your chances.
Having both secured and unsecured credit (credit cards + loans) is a good sign of responsible borrowing.
💡 Tips to Improve Your Loan Approval Chances
✅ Check and Improve Your Credit Score First
✅ Clear Credit Card Dues or Small Loans
✅ Don’t Apply to Multiple Lenders at Once – It leads to multiple hard inquiries
✅ Maintain a Healthy Bank Balance
✅ Show All Income Sources – Salaried + Rental + Side Income
✅ Apply with a Co-Applicant if your eligibility is borderline
✅ Use Vizzve Finance for Pre-Approved Offers Based on Your Profile
🧠 FAQs
Q1. Can I get a loan with a low CIBIL score?
Yes, but the interest rate may be higher. Vizzve helps match borrowers with the best-fit lenders even with moderate credit scores.
Q2. How much loan can I get based on my salary?
Most lenders allow up to 50% of your monthly income as EMI, depending on your other liabilities.
Q3. Does a rejected loan application affect my credit score?
The rejection doesn’t directly affect your score, but the hard inquiry does. Multiple rejections can lower your score.
Q4. Can Vizzve help me check my eligibility without affecting my score?
Absolutely. Vizzve uses soft checks and AI tools to assess your eligibility risk-free and recommend the best options.
published on 2nd july
Publisher : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.