What factors affect my eligibility for a loan?

Several factors can impact your eligibility for a loan. Firstly, your credit score plays a significant role, as lenders rely on it to assess your financial responsibility. A higher credit score increases your chances of approval and may result in more favorable loan terms. Additionally, lenders evaluate your income and employment history; stable employment and a steady income indicate your ability to repay the loan. Your debt-to-income ratio is also crucial, as it demonstrates your ability to manage existing debts alongside the new loan. Lenders consider the purpose of the loan, the loan amount, and the loan-to-value ratio for determining eligibility. Lastly, having a strong financial profile, reliable payment history, and a substantial down payment can further enhance your eligibility for a loan.