How Can Social Media Have an Impact on Your Personal Loan Approval?

The intriguing world of social media has barely left any industry untouched including the financial sector. Did you know that your social media profiles can significantly impact your eligibility to apply for a Personal Loan? If you have been under the impression that your Personal Loan application is just dependent on your credit score and repayment history, welcome to the world of social media and Online Personal Loan Approval.

Recent advancements in technology have allowed lenders to leverage the social media space to determine the loan eligibility of an individual or business adequately. This is especially relevant in the case of Personal Loans due to their unsecured nature. Since you aren’t required to provide something as security or collateral, there is always a risk factor involved that lenders are worried about. To make sure that these loans don’t turn into non-performing assets (NPA), the lenders do everything to minimise the risk of defaulting on payment by the customers. Checking the person’s social media presence is an effective way to know whether the individual is eligible for loan or not.

How Lenders Use Various Social Media Platforms to Assess Your Loan Eligibility?

There are several ways lenders use social media profiles of the customer to determine the credibility of the individual in question. Some of them are:

Checking the Facebook Profile

One of the most popular social media platforms since its inception, the Facebook profile of the loan applicant gives the lenders a perfect opportunity to ascertain the authenticity of the individual.

Apart from checking mutual contacts with a strong credit score, a couple of other ways lenders use Facebook to determine eligibility include:

a) Scanning Facebook pages for any abnormal post or behaviour such as posts related to overspending, gambling, and so on.

b) Repayment history of close Facebook friends to get an idea about the creditworthiness of the applicant. In this case, lenders make an assumption based on the behavioural pattern of your friends in your contact list which reflects your own bearing due to the human tendency of people befriending like-minded people.

Using LinkedIn to Understand the Employment Stability

One of the most important criteria for sanctioning a Personal Loan is the repayment ability of the candidate. Having a fixed source of income is an important factor that lenders consider while approving loans.

LinkedIn is an excellent social media platform that helps lenders gather essential information about an individual’s job history, stability, duration, and overall professional profile. Since lenders want to ensure that the applicant has a regular source of income for repayment of the loan, your LinkedIn profile can be used to determine your ingenuity as an employee. If you have a strong LinkedIn profile with a good number of connections coupled with stable employment history, the chances of your loan approval are much higher.

Gathering Important Information from Various Other Social Media Pages

Lenders, while giving Personal Loan Approval, scan various other social media pages such as Instagram, Twitter, and so on of the applicants to gather important information such as:

a) The consistency of the credentials across various platforms such as name, age, address, job profile, business information, and others to ascertain the genuineness of the individual.

b) The number and type of social media connections that the applicant has to gauge their social status and ability to repay.

c) Feedback, ratings, reviews, and so forth of the business of the applicant, if any, to determine the cash inflow and repayment capability.

d) In the case of business accounts, how often the business interacts with the customers on social media and their efficiency in handling customer complaints, and queries to verify if the profile is legitimate.

Takeaway

Having a strong social media presence can prove to be beneficial to you. However, as a loan applicant, it is imperative that you be responsible while handling your social media profiles. Demonstrating that you have an authentic profile with a proven employment track record and acquaintances with strong repayment history can work in your favour. These aspects play an important role in reassuring the lender of your capability to repay the loan in time.

Also Read: How My Personal Loan Got Approved After 3 Rejections

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