Understanding Secured vs. Unsecured Loans – A Complete Guide

Whether you’re planning to expand your business, buy your dream home, or manage personal expenses, getting a loan can be a helpful solution. But before any lender approves your loan, they assess your eligibility to ensure you can repay on time. In 2025, with changing financial regulations and smarter lending technologies, improving your loan eligibility has become even more crucial.

Here are 10 actionable tips from Yashian, your trusted financial partner, to boost your loan eligibility and secure better loan offers:

1. Maintain a Healthy Credit Score

Your credit score is one of the first things lenders check. A score above 750 improves your chances of loan approval and better interest rates. Make timely repayments on EMIs, credit cards, and avoid defaults to keep your score high.

2. Reduce Your Existing Debt

If you're already servicing multiple loans or credit cards, lenders may hesitate to offer you more credit. Before applying for a new loan, try closing or consolidating old loans to reduce your overall debt-to-income ratio.

3. Declare All Income Sources

Don’t just include your primary salary—mention other sources like rental income, freelancing, commissions, etc. The higher your net monthly income, the stronger your repayment capacity appears to lenders.

4. Choose a Longer Tenure

Opting for a longer repayment period can lower your monthly EMIs, making the loan more manageable in the eyes of lenders. This makes your finances look better and increases your chances of getting a loan. Although you'll end up paying more in interest over the full term, you can always choose to repay early once you're financially stable.

5. Apply with a Co-Applicant

Bringing in a co-applicant—such as a financially stable spouse or parent—can substantially boost your loan eligibility. When two incomes are considered together, lenders gain more confidence in your repayment ability, often approving larger loan amounts or offering better interest rates. It’s a smart move to strengthen your loan profile, especially for high-value loans like home or education financing.

6. Avoid Frequent Loan Applications

Every time you apply for a loan or credit card, it results in a hard pull on your credit report. When too many such checks happen in a short span, it can negatively impact your credit score and signal risk to lenders. To avoid this, use smart tools like Yashian’s eligibility checker, which helps you explore pre-qualified loan offers without affecting your credit score.

7. Update Your Employment Details

Stable employment is a big plus in the lender’s eyes. Being with your current employer for at least 2–3 years improves your credibility. If you've recently changed jobs, mention your total work experience to showcase your stability.

8. Improve Your Credit Mix

Lenders favor applicants who demonstrate balanced borrowing habits. If your credit profile consists only of unsecured debt like credit cards or personal loans, it may raise concerns. Instead, aim for a healthy combination of secured loans (such as home or auto loans) and unsecured credit to reflect sound and diverse financial management.

9. Keep Track of Your FOIR

Your Fixed Obligation to Income Ratio (FOIR) indicates how much of your income goes toward EMIs and expenses. A FOIR below 40–50% is ideal. Reducing unnecessary expenses and increasing income will help.

10. Use a Trusted Loan Matching Platform

Not all lenders have the same eligibility criteria. Use platforms like Yashian to match you with verified lenders based on your unique profile. This saves time, avoids rejections, and increases your approval chances.

Bonus Tip: Stay Financially Informed

With digital lending evolving, it’s important to stay updated with new credit policies, RBI regulations, and changes in CIBIL scoring methods. Financial literacy is one of the strongest assets in improving and maintaining your loan eligibility.

Final Thoughts

Getting a loan is more than just filling out an application form. It requires preparation, discipline, and the right strategy. By following the above tips, you can position yourself as a low-risk borrower in the eyes of lenders.

At Yashian, we simplify the process with a transparent, tech-enabled platform that connects you to the right loan offers from verified partners—based on your profile and financial goals.

Ready to take control of your loan journey?

Apply smarter, faster, and better with Yashian – Where Trust Meets Transparency.