How to Get Your Personal Loan Approved Instantly?
In the present day world of digitisation, it doesn’t come as a surprise that applying for a Personal Loan, and getting approved for the same, has become FAST in the true sense of the word.
Personal Loans indeed have become Go-To Loan in case of emergency financial needs,particularly owing to this very characteristic – Fast Approval.
However, no credit history or bad credit history could be the top hassles in Availing a Personal Loan from your chosen lender. So, there are a few aspects that you ought to take into consideration if you wish your Personal Loan application to get processed at the earliest possible.
Getting your Personal Loan Approved Fast
As easy as it may be to apply for a Personal Loan, it is essential for you to do your homework, in terms of getting to know about the various alternatives available in the market.
Not only will it help you compare interest rates and processing fee of the loan offers, but will also aid you in jotting down the documentation required for the same. Since most of this information is easily accessible online, you can easily prepare yourself before you approach your chosen lender.
This small exercise will empower you with the market trends, and you can better negotiate the terms of the loan.
Check Credit Score
Since a Personal Loan is unsecured in nature, most of the lenders offer Personal Loans to the applicants with a Credit Score of 700 or higher. While some lenders approve applications from borrowers with a lower Credit Score, but in turn levy a high-interest rate to stay on the safer side in the case, the borrower defaults on the repayment.
Hence, it is highly recommended that you apply for a Personal Loan with high Credit Score. To ensure this, all you need to do is check your CIBIL Score online. Even if your score turns out to be lower than what you anticipated, you can either work on improving it first and then apply for the loan, or find a lender who readily offers Personal Loans to individuals with a lower Credit Score.
Knowing your score and approaching the apt lender will expedite your Personal Loan approval.
Check when you last applied for a Personal Loan
It is important for you to understand that a quick look at your credit history will let any authorised lender know if you have availed a loan in the past, and also if your loan application has been turned down previously. If you have availed a loan in the recent past, it may lead the lender to believe that your financial situation is not ideal and that you are consistently depending on loans for meeting your needs. This may deter the lender from approving your loan application. Hence, make sure that there is at least a 6-month gap between two Personal Loan applications.
Analyse All Relevant Factors
Regardless of how urgently you need the funds, settling down for the first option that comes your way may not be ideal. It is strongly recommended that you take some time out to analyse your options, not just based on interest rates, but also with respect to the processing fee and prepayment penalties levied by different lenders. Having a complete picture of the loan offers will help you pick the one that is the best suited for your needs.
Keep Your Documents Ready
Personal Loans often require minimal documentation, including Proof of Identity, Address Proof, Employment Proof and Proof of Income, along with a passport-size colour photograph. While these documents can often be conveniently arranged, you must ensure that you have them ready before you approach the lender. This will largely help in swift loan processing.
Ensure a Good Bank Balance
When preparing to apply for a Personal Loan, make sure that your average bank balance in the past 6 months is equal to or more than twice your expected EMI. This will assure the lender of your strong financial discipline and encourage them to process your loan swiftly.
While it greatly helps if you have been working for your current organisation for over 6 months, however, if that’s not the case, make sure that at least you have been in the same field of work for over 1-2 years. Owing to the fact that a Personal Loan is unsecured and bereft of any collateral, the lenders are usually more inclined to approve applicants with a steady stream of income, and the ability to repay the loan.
Don’t Apply to More Than 1 Lender
In times of emergencies, it is understandable that you are desperate to procure the loan amount at the earliest possible. To this end, you might feel tempted to apply to more than just one lender simultaneously. However, you must realise that each lender will check your credit history, and the multiple loan applications will reflect on your Credit Report. The lenders will deem this ‘credit hungry’ behaviour as a red flag and will turn down your application, which in turn will result in an unwanted blow to your score. Hence, it is in your best interest to hold your horses and apply for a Personal Loan to a single lender.
Choose an Apt Loan Amount
The lender will analyse your income and repayment ability before approving your loan application. Hence, you should only apply for an amount that you can efficiently pay off within the agreed tenure. Ideally, your Personal Loan EMI should not exceed 40% of your monthly income. Hence, you should calculate the EMI on your expected loan amount using a Personal Loan EMI Calculator. If your EMI exceeds 40% of your monthly earnings, you should either lower the loan amount or ask for a longer tenure. Choosing an ideal loan amount and tenure will help in speeding up the loan approval and disbursal.
We hope that you are now aware of some of the simple yet truly effective ways to ensure instant approval of your Personal Loan application!
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