All times may not be the same, financially speaking. Sometimes there are events due to which you might have to take a personal loan to meet your immediate financial needs. Here are some quick tips which can help you get your personal loan approved instantly.
- Maintaining a Healthy Credit Score
Your credit score (maintained by CIBIL) is the benchmark based on which lenders offer you a loan. A good credit score ensures that you get a loan on favorable terms, like the interest rate, tenure etc. However, a mediocre score would make it very difficult to negotiate with the lender, and you would have to accept the loan on the terms of the lender.
Just like Rome was not built in a day, a good credit score is also achieved over time. Overborrowing and delay/defaults in repayments are some factors that negatively impact your credit score.
Sometimes, your credit score may be low even if you are financially disciplined. In that case, you must get your credit score rectified before applying for a personal loan.
- Be Financially Healthy
Your financial habits make your financial health. Prospective lenders can gauge your financial health based on documents like your bank balance, credit card statements and annual income tax returns. Hence, it is essential to maintain good financial habits like timely repayments of loans and credit cards, spending and borrowing within your means, etc.
- Calculate Your Loan Eligibility
It is always worthwhile to do your homework before approaching a lender for a personal loan. For instance, considering that your family is working from home, you may want to do some renovations and are seeking a personal loan of Rs. 10 lakhs for this purpose. Your income status indicates that you are eligible for INR 15 lakhs. Although you are eligible for a higher amount, you may not really need it, and you may decide to borrow only Rs. 10 lakhs.
Likewise, you may require a personal loan for your child’s education worth Rs. 15 lakhs. However, the personal loan EMI calculator may suggest your ineligibility for that amount due to your income status. You must then think of other options, such as providing collateral to the lender.
Being realistic and practical about your eligibility can ensure that your loan application is not rejected.
- Find The Right Lender
Different lenders have different admissibility criteria, personal loan interest rates, terms of repayment, and other charges. Also, the services of some lenders are organized and more professional as compared to the others. Hence, it is important to do some basic research about the lender to ensure that your personal loan gets approved without any hassles.
Having the required documents in place ensures that your personal loan is processed instantly. In the case of a personal loan, the documents required are relatively lesser than other loans, such as a home loan. Banks typically ask for identity and address proofs, bank statements of the past 6 months, salary slips or profit and loss account, and balance sheet.
- EMI Calculator
Personal loan EMI calculators can help you compute your monthly installments or EMI based on the data you provide, viz. the loan amount, interest rate, and tenure. You can use different combinations of these variables to check the EMI and determine which option suits you the best.
The greater the interest rate, the higher the cost of the loan. Further, if the loan tenure is longer, the EMIs would decrease, but the loan cost would be higher as repayment happens over a longer duration.
In these times, getting a personal loan is simple and can be availed online from the comfort of your home. But, one should always remember the adage – “never borrow more than what you can repay”.
Further, choosing the right lender would ensure that your personal loan processing and closure at the end of the tenure happens smoothly.