Getting a personal loan can be a convenient way to finance your small or large expenses. With the availability of easy-to-meet terms and conditions and quick disbursal time offered by lenders like Non-Banking Financial Companies (NBFCs), personal loans have become a preferred choice for many. Here, we will discuss 5 tips that can help improve your chances of personal loan instant approval.
1. Improving your CIBIL score
One of the most important factors that lenders consider when reviewing a personal loan application is your CIBIL score. A good credit score indicates your creditworthiness and ability to repay the loan on time. To improve your chances of personal loan pre approval, it's essential to work on improving your CIBIL score. To do this, pay off all your outstanding dues, including credit card bills, on time.
2. Lowering your monthly debts
Having a high percentage of your income dedicated to repaying existing debts can affect your chances of getting a personal loan approved. Lenders may consider this as a sign of financial strain and may charge you a higher personal loan interest rate to cover the added risk.
To increase your chances of personal loan instant approval, aim to maintain a Fixed Obligation to Income Ratio (FOIR) of 40% to 50%. FOIR is the percentage of your monthly income that goes towards repaying existing debts. This includes EMIs for loans, credit card bills, and other outstanding liabilities.
3. Checking the list of required documents
Before you apply for personal loan online, make sure you have all the necessary documents ready. Lenders require certain documents to verify your identity, address, income, and employment details. Having all the required documents in order will expedite the personal loan easy approval process.
Here is a checklist of commonly required documents:
- KYC documents: Aadhaar/ PAN Card/ passport/ voter's ID
- Employee ID Card
- Salary slips of the last 3 months
- Bank account statements of the previous 3 months
Self-employed applicants may need to submit additional documents such as income tax returns, previous year's turnover, and proof of business.
By ensuring that you have all these documents readily available, you can streamline the loan application process and improve your chances of personal loan pre approval.
4. Fulfilling the eligibility criteria
Before choosing a lender, it's important to thoroughly understand and meet their personal loan eligibility criteria. Different lenders may have varying requirements, so be sure to review them carefully.
Here is the common eligibility criteria for personal loans:
- Age: You need to be between 18 to 60 years old.
- Citizenship: You should be an Indian citizen.
- Work experience: You should have a minimum work experience of 12 months.
- Employment stability: You should be working with your current employer for at least 6 months.
- Minimum income: You should have a monthly salary of ₹15,000 or more.
Ensuring that you meet these basic criteria will increase your chances of personal loan instant approval.
5. Applying for the right loan amount
When you apply for personal loan online, it's essential to determine the right loan amount that suits your financial needs and repayment capacity. Applying for an amount that is too high or too low can impact your chances of getting the loan approved.
To ensure your application is approved, use a personal loan EMI calculator to determine the amount you are eligible for based on your income, existing debts, and other factors.
By applying for the right loan amount, you improve your chances of personal loan pre approval, as lenders will see that you have considered your repayment capacity and opted for a realistic borrowing amount.
Conclusion
Improving your chances of personal loan instant approval requires careful consideration of various factors. Start by improving your CIBIL score and lowering your monthly debts to enhance your creditworthiness. Ensure that you have all the required documents ready before applying for a loan, and fulfil the personal loan eligibility criteria set by lenders.
Remember, each lender may have different terms and conditions, so it's important to carefully review them before making a decision. Mahindra Finance offers personal loans with easy approval processes and competitive personal loan interest rate.
FAQs
1) What is the personal loan interest rate?
The personal loan interest rate varies depending on factors such as the borrower's creditworthiness, loan amount, and repayment tenure.
2) Can I apply for personal loan online?
Yes, many lenders offer online application processes for personal loans. You can conveniently apply for personal loan online from the comfort of your home or office.
3) How long does it take to get personal loan online approval?
With the advent of technology, some lenders provide instant personal loan online approval within a matter of hours, while others may take a few days to process the application.
4) Can I check my personal loan EMI online?
Yes, you can easily check your personal loan EMI online using a personal loan EMI calculator. Simply enter your income details, existing debts, and other required information in the personal loan EMI calculator and get an accurate estimate of your EMIs.
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