How to Boost Your Chances of Getting a Personal Loan
A personal loan comes with a diverse range of benefits. Borrowers can use the funds to cater to medical emergencies, wedding expenses, business needs or a dream vacation. The leading banks offer a completely digital process with flexible tenure of 60 months. You can receive an amount of up to ₹40 lakhs. So, you have to do everything possible to maximise the chances of loan approval. There is no universal rule to achieve this. It usually differs from bank to bank and depends upon individual circumstances.
But there are ample concrete ways to get the loan disbursed. For example, you might have to show job continuity with a stable income. This requires you to provide minimum documents and tick off basic personal loan eligibility criteria. Take a look at few other tips.
Ø Good Credit Score
Personal loans are usually unsecured. This is why banks rely on your creditworthiness to approve the application. A number above 750 is ideal and can increase the odds of getting the loan.
Try to build a healthy profile through the following:
- Repay your EMI and bills on time
- Check your credit report for mistakes
- Limit your credit utilization ratio to 30%
- Start paying more than the debt minimum amounts
Check the report at least a month before you apply for personal loan online. A good score might help to lower the interest rates and ensure better loan terms and conditions.
Ø Correct Documentation
Provide the right information to the bank. Make sure the copies, like the Aadhar card per loan, have the exact details as the ones in the original documents.
The leading Indians banks require a few basic papers like:
- Valid KYC
- 3 months’ bank statements
- Net banking or debit card details and
- eSign/eStamp for the digital process.
A single authentic document will help the banks comply with the know-your-customer requirements, according to a notification by RBI. This subsequently boosts the chances of getting the loan sanctioned on time.
Ø Don’t Apply for Bigger Amounts
Try not to as for too much money, especially more than you require. Consider a practical amount according to your financial status. Otherwise, the bank will be compelled to reject your PAN card loan request. Smaller loans tend to get approved easily. This is because they can be repaid even if you do not have a high income. Borrowers also do not have to make big EMI payments which might hamper other monetary obligations later.
Ø Multiple Loan Applications
Try to work with a single trusted lender. This will offer a positive impression during the ‘hard enquiry’ process and increase the chances of approval. Avoid dropping applications in too many banks. Every decline can harm your credit score by a few points. This can further lower the chances of getting the loan approved.
Personal loans make it easy to reach your financial goals. One of the main reasons is that it is unsecured and does not possess a threat to your assets. Simply tick off the personal loan eligibility criteria and follow the above tips. Rest assured, you are most likely to receive the funds. If it gets rejected, consider a cooling period of at least 6 months before re-application.