Want Fast Approval on Your Online Personal Loan? Follow These 5 Steps!
What is the right time to apply for a personal loan? Sometimes, you may have some unexpected financial liabilities looming large such as an imminent wedding, home improvement, medical emergency or something similar. And that’s when you will be in dire need of a personal loan.
When you need funds to cover the mentioned needs, applying for a personal loan will be a good thing to do. However, not every borrower is lucky to get an instant loan approval.
Yes, if you want that your personal loan gets approved fast; here are the five smart steps that you can deploy for a positive result.
Step 1: Check your credit score before making a loan application
It is the foremost step that you should take while you apply personal loans. If you don’t check your CIBIL score first and apply personal loan without it, a lender might not approve your loan. Thus, get your credit report as the first thing. There may be some fraud entries which you may also want to resolve before a loan application.
Step 2: Maintain a credit score of 750 or above
A borrower having a CIBIL score of 750 or more have more chances to get a fast personal loan approval. Have a low score? You will need to enhance it by repaying all your debts on time, wait for six months or more and then again apply personal loan.
Step 3: Do not apply to many lenders simultaneously
It is a simple basis of the personal loan application that a borrower shall know. Yes, when you apply personal loan to many creditors at a time, it will reduce your credit score. How? It is because each loan enquiry will initiate a hard enquiry on the CIBIL score and will lessen it. Lenders may observe this tendency and may not consider your case because they may take you as a personal ready to play ‘financial con.’
Step 4: Don’t apply for a new loan if you had already availed one recently
Do not apply personal loans if you have already taken out a loan during the last 6 months. Why? It is because lenders may see that when you already have an active loan running against your name, you may be unable to take the burden of another loan. Hence, they may just reject the loan application.
Step 5: Use only about 30-40% of your income for EMI repayments
It is also one of the significant reasons lenders reject a personal loan application. Ensure your monthly income in the proportion of not more than 40% is dedicated towards payment of the existing EMIs.
Lenders may assess your existing financial obligation and assume that you may not carry on with timely payment of your EMIs if they sanction your personal loan.
Thus, try to reduce your income dedication towards EMIs and if you have some other fund channels, pay more through them.
The Bottom Line
Don’t let your online personal loan chances diminish and take care of all the discussed elements that may reject or sanction your loan. Take all corrective measures today to get personal loan approved without issues.