Applying for a Personal Loan: Tips to Get Approved for Personal LoansNow that the lockdown has eased off and life is getting back on track, there are many who are out of jobs and running low on business. Getting a personal loan is a good idea to deal with a financial setback and come out as a survivor. Those in need of an emergency finance are sceptical about a personal loan as borrowing money is a liability. However, instant personal loan apps in India have simplified the loan application process. Deriving the EMI in advance using the loan EMI calculator gives clarity on setting a monthly budget. This makes loan repayment easier and hence a personal loan is not a burden these days as you can flexibly adjust the loan amount, tenure and interest to get a suitable EMI.
The financial needs are increasing and loan approvals are based on stricter factors due to the prevailing pandemic. Urgent funds may be required for house rent, education fees, property repair etc.
Here are some easy tips to get personal loan approved easily:
- Check the lender’s eligibility criteria. Before applying for a loan. Applying in a hurry or ignoring their mandatory terms can result in rejection. This can also lower your credit score. So, the first tip is to verify the list of eligibility criteria and analyse whether you fit in or not.
- Check your credit score before applying for a loan. Credit history reflects your creditworthiness in terms of income, assets and repayment history. Maintain a good score for quick loan approvals.
- Avoid multiple loan applications. This can raise a question on your repayment ability. Hence, it is better to sort different financial institutions to proceed before a loan application. Compare factors like eligibility, terms, interest rates etc. and give a loan application to the one that suits your requirements.
- Improve your credit information report. This can be done by fixing the errors and misses found in the credit report. Lesser the mistakes, faster will be the chances of loan approval.
- Clear the old debts before applying for a new loan. Pending payments or outstanding bills should be cleared before a fresh loan application. This will show a positive payment history and increase the scope of loan approval.
- Have repayment plans in advance. Organising repayments will keep your EMIs well-managed and give no stress of delayed payments. A series of missed payments can create difficulty in future loan approvals.
- Feed correct information in the loan application. Lenders can very well access your credit profile that will give an overview of your assets, IT returns, number of past loans etc. Submission of fake information or duplicate documents can lead to rejection affecting your credibility big time.
Although personal loans are a great source of monetary help, consider every aspect for a speedy approval. Remember the above tips to get your loan sanctioned in the first attempt.