Want to get a lower rate of interest on your Personal Loan along with quick approval? Read on to find out more.
When it comes to Personal Loans, it is important for the bank or lender to be aware of how you, as the borrower, will repay the loan. If you have been maintaining a good credit history by paying your dues on time and in full, there’s nothing like it. This will increase your credibility as a borrower and boost your chances of loan approval.
Apart from making timely payments and reinforcing your credibility as a borrower, there are a couple of other steps that you can take in order to accelerate the approval of your loan application. Here are the top tried-and-tested ways to perfect your Personal Loan application.
Additional Reading: Your Personal Loan Eligibility Checklist
Check If You Meet The Eligibility Criteria
Before applying for a Personal Loan, compare the eligibility requirements of different lenders. Most banks in India have a minimum age requirement of 21 years and a maximum age requirement of 60 years. This, however, varies from lender to lender. In addition, banks also have a different age requirement for salaried and self-employed professionals.
Similarly, most banks also have a minimum income requirement and a specific employment requirement. Like age requirement, the employment criteria and income criteria also vary from bank to bank. Before applying for a loan from a particular lender, make sure to check if you meet its eligibility requirements for a speedy approval.
Additional Reading: Your Guide To The Home Loan Application Process
Keep Paperwork Handy
The main documents you’ll need to have are listed below:
>Identity proof with photo ID such as your driving licence, PAN card, or passport.
>Age proof (Any documents out of your Pan Card, Voter ID Card, and Driving License can serve this purpose)
>Address proof (Any document out of Rental Agreement or Lease Agreement, Passport, Voter ID Card, Ration Card, Driving Licence, Aadhaar Card, or utility bills such as water, electricity, phone or gas bill can serve this purpose)
>Income documents including current or last three months’ payslips and bank statement.
Additional Reading: Car Loan Application 101
Don’t Skip The Research
One of the biggest mistakes you can avoid is not researching enough.
Different banks offer different interest rates. Before you settle for a Personal Loan from one bank, consider all your options. If you go for the first lender that offers you a loan, you could miss out on better loan offers from other lenders. Don’t forget to take a look at the processing fees and other applicable charges too. Compare all of these factors before you zero-in on a loan.
Additional Reading: Is Prepaying Your Personal Loan A Good Idea?
Last, but not the least, lenders will definitely want to scrutinise your credit history. If your score is anywhere less than the expected or if you have defaulted payments on your credit report, it will prove quite difficult to get a quick approval on your Personal Loan application. So, it’s always wise to ensure that your finances are in order.
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Make sure you review your credit report before making a loan application. In case there are any inaccuracies or errors, get them fixed before submitting your loan application.
Additional Reading: Personal Loan EMI Calculator
Here’s a pro tip: Always match loan amount with requirement. Irrespective of whether you are borrowing for the short term or long term, always remember to borrow an amount that you need. It’s wise to take a loan that you can pay off easily.
Also, steer clear of borrowing more than you need even if you are eligible for a higher loan amount. Remember that you will have to repay the borrowed amount without having to get into more debt. As a safe practice, be realistic while estimating how much of your monthly paycheck can be directed towards repaying the debt. The consolidated EMIs of all your borrowed credit should not exceed 40-50% of your monthly income.
With these pointers, you’re sure to speed up your loan application. To explore exclusive deals on financial products, just click below!