The infusion of digitization in the personal loans industry has made the loan availing process simple and completely hassle-free. More and more people are now opting for loan applications online rather than visiting a lender’s branches. This saves a lot of time in case of emergencies. Yet there are a few things which you need to keep in mind while applying for a personal loan online. There are certain criteria which Banks and NBFCs check in deciding whether your loan will be approved or not. If you are short on time, then there a few ways through which you can speed up your loan approval process.
These 10 ways will surely help you to get your personal loan approved faster.
1. Assess Your Needs
Before you decide to apply for a loan, if you have assessed your needs, the loan amount you require, the personal loan interest rate offered by the lenders etc, then this speeds up your loan planning process.
2. Check List of Documents
If you are opting for an offline loan, then before you visit the lender, keep all the required documents ready. The basic set of documents include the Personal Identity details, Address proof, employment details, etc. Check beforehand with your lender, or on the lender’s website, what kind of documents are needed.
3. Apply for an Online Paperless Loan
An online loan does not require you to submit hard copies of documents. You have to upload only the soft copies. It is a paperless process. Online personal loans have a quick turnaround time.
4. Keep an Impressive Credit Score
A Credit Score is a score of your creditworthiness and is based on your credit history. This 3-digit number is a very important aspect which Banks or NBFCs consider while approving your loan. If you already have an impressive score, then your loan gets approved faster.
5. Know Your Loan Repayment Capacity
One way to evaluate your loan repayment capacity is to calculate your debt to income ratio. A debt to income ratio is the gross income left after deducting all your existing debts. The lower the ratio, the better your chances for faster loan approval.
6. Avoid Multiple Loan Applications
Once you apply for a loan, the lenders do a background check. If you have applied at multiple lenders and have faced rejections from these applications, then this will reflect badly. Hence choose your lender carefully and apply to one only.
7. Strong Savings Account
If you have a strong saving account, then it becomes evident enough for the lenders that you have a steady income and good control over your saving. This can help you avail an instant personal loan.
8. Healthy Credit Diversity
Always have a mix of secured and unsecured loans. If you have paid these loan on time, then the lenders feel at ease and consider you as an applicant with a responsible credit management history.
9. Discuss The Nitty-Gritty
Make sure you have a discussion with the lenders regarding the smallest of details pertaining to the loan offered. Discuss the loan procedure in advance so that you have an idea of how much time is it going to take for the loan to get approved.
10. Have Steady Income
A steady job leads to a steady income. This is an important factor as a personal loan does not require you to keep any collateral. A steady income shows the lenders that you can do timely payments of the monthly EMIs.
A faster loan approval helps you get the much-needed funds quickly. Before you decide to take a loan, you can calculate the EMIs using a personal loan EMI calculator. This will help you decide whether the amount is in your repayment capacity.