How Frequently Can I Apply for an Instant Personal LoanPersonal loans are considered as one of the best-selling credit facilities due to its instant feature, promising a timely financial help. Unlike other loans, personal loans are unsecured in nature and not bounded by major rules. So, several borrowers belonging to different age groups rely on instant cash loans frequently for its ease of application online. But, can you apply for a personal loan twice? Or how frequently can you apply for an instant personal loan? Be clear about this basic information about the frequency of applying for a personal loan so that you don’t have to face any rejections in financially tight situations.
Though the loan application process is very easy via a personal loan app, it doesn’t mean multiple loan applications will be entertained. The frequency of personal loan application also decides the loan status whether approved or rejected. Each time you apply for a loan, the credit rating gets recorded by the credit bureaus in India. Know that borrowers drop their own credit score with multiple loan requests. It is against the code of conduct of the financial companies and reflects an unprofessional attitude.
Undoubtedly, the urgency of money may be high for a borrower and so he/she is applying for an instant loan repeatedly. However, if you have already applied for a loan once or twice and still not getting the desired response, you can get connected to the customer care or toll-free lines to enquire about your loan status. The instant loan apps also give a clear loan status.
Let us see what is the ideal frequency of personal loan application in a year:
Ideally, borrowers should take a gap of 6 months before applying for an extra loan along with an ongoing one. Lack of space between two or more loans can cause repayment burdens when multiple EMIs are waiting to be paid. In case borrowers miss paying EMIs for any of the loans, this will be considered as a negative behaviour while tracking repayment habits and can also affect the credit score negatively.
Besides, if you are confident about managing repayments of multiple EMIs at the same time, you may apply for a couple of loans at once. Facts that will prepare you to stay eligible for multiple loan applications:
- Ensure you have a stable credit score
- Hold a no defaulter tag in your financial history
- Strike a balance between debt-to-income ratio before future loan applications
- Ensure you submit the right set of KYC documents and income proofs during loan applications.
- Submission of Incorrect, fake, or unauthorised documents
- Basic mistakes in the loan application form
- Low range of credit score reflects weak repayment ability
- High debt-to-income ratio, increasing the level of debts compared to income
- Inconsistency and irregularity of monthly income
- Track record of missed and delayed payments
- Not falling into the right age slab