5 ways to get your personal loan approved quickly
When people need money urgently, they think of personal loans. With the digitization of banking, getting a personal loan is one of the easiest and quickest ways to fulfill your financial requirements. To ensure you get money when you need it the most, follow these tips:
1. Know your credit score
Credit score is the reflection of how you had treated the available credit in the past. It is one of the most important factors that lenders take into consideration when assessing your loan application. Some lenders keep credit score as a part of the eligibility criteria, which if not fulfilled may lead to loan rejection. Besides being one of the determining factors for loan approval, credit score if excellent can get you loan at lower rate of interest. Therefore, loan seekers must always check their credit score before applying for personal loan so that if your score is low, you can take the required steps to improve it and increase your chances to get personal loan that too at lower rate of interest. Checking your credit score beforehand also helps in avoiding unnecessary hard inquiries.
You can fetch your credit report directly from credit bureaus. It will be free for you once in a year but for frequent checks, you will need to pay a nominal fee. Alternatively, you can also check your credit score at online credit cards and loans marketplaces and get your credit score for free.
2. Decide on the loan amount
Before applying for personal loan, assess your needs carefully and decide on the loan amount that you need. Often people ask for high loan amount, which leads to loan rejection. Therefore, one must ask what they need and not what they want. Even if your lender is ready to give loan of amount larger than you asked for, you must still borrow the minimum possible amount that you need. The facility of loan also comes with the responsibility of paying back. If you take loan of an amount greater than wat you require, you will find a way to spend it, thus, increasing your liability and also the payable interest amount.
If you’re having trouble calculating the loan amount and the EMI (equated monthly installments), you can use a personal loan EMI calculator. It is an online EMI calculator – a tool that will:
- Save you from tedious calculations
- Help you calculate personal loan EMI in just a few seconds
- Help you assess your loan repayment capability
- Plan your monthly finances well
3. Consider and compare all available options
Everyone wants best deals on personal loans but no one wants to make efforts for it. You cannot get the best deal without thoroughly searching the market. If you do not have much time to do an in-depth research or want to make the decision-making process faster, visit the online loans and cards marketplace. Online platforms like these, you can get comprehensive information on various personal loan offers from various top banks and other financial institutions. You can check your loan eligibility at such platforms and on the basis of that they will shortlist eligible personal loan offers for you. On these websites you can read information on loan offers at your leisure, compare different loan offers and pick the loan offer that suits your financial requirements the best, thus, leading to quick approval and disbursal of the loan amount.
Most loan applicants base their choice of a personal loan offer on the basis of interest rates. There is no doubt that interest rates are important, however, they are not the only thing that you must consider when choosing personal loan offers. Additional features such as loan tenure, processing fees, maximum loan amount, pre-payment charges and so on must also be considered by personal loan seekers before signing on the dotted lines of a personal loan offer.
4. Keep all relevant documents prepared
Nowadays most lenders do not require a long list of documents from borrowers to process loan. Due to digitization of banking and the use of Aadhaar, the documentation process has become more convenient not just for customers but also for banks. The documentation process of personal loans is also simple, thus, leaving little to no margin for an error. Still one must be careful with this process as proper documentation leads to quick loan approval and disbursal of funds. Therefore, always make sure to read through the documents requirements carefully before you submit your application. Also double check your documents to ensure that all relevant papers and proofs have been attached with your personal loan application form. Proper documentation leads to quick disbursal of money. If you provide inaccurate information in your form/documents or miss out any of the required documents, your loan processing time will extend and can also lead to loan rejection.
5. Avoid simultaneous applications
Often personal loan seekers apply for it at multiple banks and other financial institutions simultaneously. However, this is one of the things they must avoid at all times especially if they want to increase their chances of personal loans approval. We all know that your credit report is one of the important factors that lenders consider when assessing your loan application. Whenever you apply for personal loan with any of the bank, they request your credit report from credit bureaus. This is known as “hard enquiry”. Hard enquiry is not considered good as it reflects on your credit report with the date when the enquiry was requested along with the purpose. If you apply for personal loan with multiple lenders simultaneously, multiple queries will be generated in your credit report, which when seen by prospective lenders will be deemed as a “credit hungry” behaviour. Lenders are wary of such kind of behaviour by prospective borrowers. Therefore, often such applications are rejected by the lenders.
These were a few points that can help you in improving your chances of getting quick approval on personal loan from lenders. The same points are also applicable when it comes to getting quick approval from lenders for other types of loans such as – home loan, car loan or credit card among others.
