Personal loans are becoming the most preferred financial tool when it comes to emergency financing. Today, applying for a personal loan has become easier than ever before withsimple online loan facility. You can either visit the lender’s website or download a money loan app to apply for a quick loan.
Though the process is made much simpler, you must have the necessary knowledge to apply for an online loan without any hassles. Many borrowers face loan rejections or delays because of simple mistakes. Not filling out the application correcting, overwriting, submitting wrong documents, and discrepancies in information are some of the common mistakes that you can avoid.
Read on to know the 5 most important tips that will help you avail a personal loan easily.
Tips to Get A Personal Loan without Delay
A personal loan is one of the most reliable financial tools that you can use during an emergency. However, having to face a loan rejection or a loan delay due to human errors on your side during such situations can be very frustrating. Check out these 5 tips that will help you get a personal loan without delay:
1. Apply online
The quickest and most secure method to obtain a personal loan is to apply online. After submitting your application with all the necessary details and supporting documentation, the lender will send you a confirmation message. After reviewing your profile and documents, the lender will decide whether to approve or deny the online loan application.
Another critical benefit is receiving all loan application updates via email and text. If you meet all the lender’s requirements, then your loan application is approved within minutes. Once approved, the loan amount is directly transferred to your bank account within 24 to 48 hours.
2. Maintain a good credit score
Your creditworthiness is reflected in your credit score. Therefore, you need to have a decent credit score to get your personal loan accepted. This is the most crucial factor that lenders consider when assessing your profile, particularly for personal loans. Therefore, the two primary factors taken into account when approving the loan are your income and credit history.
If you have a high credit score, lenders will view you as having a low-risk profile. This helps you get a loan approved easily at better interest rates and lower processing fees. You should always pay your credit card and loan obligations on time to maintain your credit score. Setting up a standing bank instruction for all your EMIs can help avoid missed due dates. Make sure there is always a sufficient amount in your auto-pay account.
3. Apply to one lender only
People typically apply for personal loans with many financial institutions when they need money urgently. However, the fact that you have applied to many lenders may make you seem credit hungry. The credit bureau may mark you as a risky borrower which will lower your chances of loan approval.
The requirements for lending vary depending on the lender. Although they all provide the same product, the features, advantages, rates of interest and other fees differ. Therefore, you must research and select a lender after examining their eligibility requirements and product features.
Before looking elsewhere, inquire about personal loan possibilities with your current bank. Nowadays, many banks provide pre-approved and pre-qualified personal loans based on your banking history and credit score. You might have the personal loan amount disbursed in your account within a few minutes.
4. Keep all the paperwork ready
Before applying for a personal loan, have all the necessary paperwork ready. The list of essential papers is available on the lender’s official website. Keep these documents handy to speed up the loan procedure.
Lenders often require the following documents:
- PAN cards, AADHAR cards, passports, etc., are examples of identity proof.
- AADHAR Cards, Voter IDs, Passports, Utility Bills, etc., are examples of address proof.
- Income Evidence
For salaried applicants:
- Last 3 to 6 months’ salary slips
– Self-employed candidates:
- Current Income Tax Return (ITR) and Income Computation.
- Certified by a Chartered Accountant for the previous two years are the balance sheet and profit and loss statement (CA)
5. Apply for a loan amount that you are eligible for
A loan application will be denied if you request a loanthat exceeds your maximum loan amount eligibility limit. You can use an online loan eligibility calculator to estimate your loan amount eligibility. Different lenders may offer you different maximum limits. So, make sure to check your eligibility limit with different lenders and apply with the one who offers a higher loan eligibility.
Do not exhaust your maximum loan amount just because you are eligible for that amount. Always apply for a loan much lower than your total eligibility unless it’s an unavoidable emergency. Keeping your loan amount low not only improves your chances of loan approval but it also leaves room for future borrowing.
Today, getting a personal loan is as easier as tapping on your mobile. You can just download a reputed money loan app and apply for an online loan without any hassles. But to make your loan experience smooth, you must keep your borrowing profile healthy and your documents handy. Make sure to know all about the financial commitment you are getting into to avoid any mid-way surprises.