Everyone talks about Instant Personal Loans; you get a lot of messages, emails and phone calls claiming that they can get you a Personal Loan in just 24 hours. However, it’s always easier said than done. The fact of the matter is that, although banks do provide Personal Loans with lesser documentation formalities, they would still do complete verification before sanctioning a loan to anyone. A lot of people do get messages for pre-approved Personal Loans, but for that also, you need to check your eligibility and only then apply for a Personal Loan to increase your chances of approval. In case you are planning to apply for a Personal Loan, ensure that you know a few things beforehand and work out accordingly to get a faster and easier Loan Approval.
In this article, we would discuss about 5 easy ways to get an instant Personal Loan approval:
- Check your credit score
- Attach the credit report
- Compute your affordability
- Choose the right lender
- Check the list of documents required by the chosen lender
- Check Your Credit Score: That’s the first thing you should do the moment you plan to apply for a Personal Loan. Most people are not aware of their latest credit scores since it keeps on updating depending on your bill and loan repayment behaviour. It is always advisable to get your credit score checked before applying for a loan, to be sure if you would be eligible for a loan or not. In case you have a good score, i.e., 700 or above, your chances of instant loan approval increases. However, in case your credit score is anything less than the required one, then there is a reason to worry. In this situation, the best thing to do before loan application is first work on improving your score and getting it above the threshold.
- Attach a Copy of the Credit Report: Once you retrieve a copy of your credit score from CIBIL or other credit bureaus, you can attach it along with the loan application and documents. This gives a lot of confidence to the lending bank and talks about your seriousness in terms of your creditworthiness and repayment capacity. If you have a good credit rating, the chances of loan rejection are bleak.
- Before Taking a Loan, Compute Your Affordability: Meeting the eligibility criteria is just one part of the process; you have to analyse your monthly income and expenditures to understand whether you should apply for a loan or not. And if you can afford to repay the loan, how much amount can you pay comfortably as equated monthly instalment (EMI).
If you already have a Home Loan or other credit going on, then applying for a fresh Personal Loan can become a burden on you.
Remember always, the total amount for EMIs should not be more than 40% of your net monthly Income. There are EMI Calculators available online. You can use these tools to know your eligibility before applying for a personal loan to avoid rejection.
- Choose the Right Lender: Each lender has its own set of charges and fees associated with their Personal Loan products. You need to be careful while choosing the right lender. Compare loan offers of various banks online to know which product matches your requirements. There are many banks offering competitive interest rates on Personal Loans, and HDFC Personal Loan is one of them.
- Check the List of Documents Required by the Chosen Lender: Right document works as a key for any loan approval. Before applying for a Personal Loan with the selected lender, you should check important documents required by them so that you could get instant Personal Loan approval. Most common documents are your identity proof, residence proof, age proof, and income proof. Keep the documents ready to ensure faster loan approval will make the loan approval process faster.
It is always better to be a step ahead of the game, when it comes to getting the loan approval. Hence if you follow the 5 steps mentioned above, you can surely get your desired Personal Loan approved faster and without any hassle.