6 simple steps to get your personal loan approved

6 Simple Steps for Personal Loan Approval

Personal loans are useful in emergencies. These can be helped with minimum documentation and do not expect any collateral. With many banks and NBFCs improving instant personal loans aggressively, getting a personal loan approved does feel like a child’s play. When you apply for it, there can be many eligibility regulations, terms, and conditions that financial institutions do not disclose upfront, which at times results in delayed processing of a loan.

When any person urgently needs money, then they apply for a personal loan application, it becomes important to cut out all the possible delays by using the below steps:

How to get apply for an online personal loan

A personal loan is also applied for online. It is the fastest still safe way to obtain a personal loan. When you apply by providing all information and uploading the required documents, then you will get a confirmation message from the lender. When your information and documents are verified then the lender will reject or approve your loan application. It is an important goal that you get all the loan application updates through messages or emails. The loan approval process generally accepts one week after you have accepted all the mandatory documents. Once approved, the distribution can take another 1-2 days.

Keep a good bank balance

Banks calculate your Normal Monthly Balance by expanding the daily closing balance of all days in a month and dividing it by the number of days in a month. While testing your repayment capability, lenders check if you are retaining a good Average Monthly Balance.

Keep all the documents ready

You have ready all the required documents, before applying for the personal loan. Since it is an unsafe loan, lenders do not inquire for many documents. You should check the lenders and ask the bank or official website to provide you with the list of required documents.

The lenders ask for the following documents:

  1. Address proof like AADHAR card, electricity bill, passport, voter Id, etc.
  2. Identity proof like AADHAR card, PAN card, etc.
  3. Income proof like salary slips, ITR forms

Apply only with one lender

Most people’s urgent need for money and people usually apply for personal loans with multiple banks. Then to increase the chances of getting the loan as soon as possible, the lenders may avoid providing you with a credit facility. Also, multiple requests for loans may result in multiple contradictions, which may damage your credit score.

Provide accurate information

Providing proper personal and income details will not only increase the chances of loan approval but make the whole process smooth.

For example, If you have more than one income source, provide the circumstances of all your income references at once so that the lender will not have to come back asking for extra income-related documents if the major source of income is limited for your loan repayment capability.

Maintain a good credit score

A credit score affects your creditworthiness. Normally, a credit score above 700 is deemed good, but having a credit score above 750 can be an added benefit in the rapid approval of a personal loan. When your loan is approved then you must have a good credit score.

To maintain your credit score, you should pay your EMIs on time and never default on any loan or credit card dues.

Although availing of a personal loan might not be as easy as it looks like, following all the above tips will help you get a personal loan approved quickly. A personal loan is an urgent requirement, but we advise you not to apply for a personal loan in a hustle. Rather, do your analysis and apply to the lender with whom your eligibility and regulations match the best.