Follow These Tips To Get Your Personal Loan Approved

Follow These Tips To Get Your Personal Loan Approved

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Personal loans are one of the popular choices of availing finance to meet personal as well as business requirements. It is an unsecured loan, available for self-employed and salaried professionals and does not require any security or collateral. However, as it is an unsecured loan, getting a personal loan isn’t that easy. Banks and non-banking institutions provide personal loans based on the credit history and repayment  and personal loan eligibility of the borrowers.

Here are some tips to get a avoid rejection of personal loan application:

  1. Checking eligibility of financial institutions: Every bank has a specific Personal Loan eligibility criterion related to age, income and credit score. The minimum and maximum age criteria for most of the bank ranges between 21 years to 60 years, and you can take a personal loan for up to 5 years. However, you must check the eligibility criteria of every institution before applying for a loan to avoid chances of getting the loan application rejected.
  2. Credit score: Having a good CIBIL or credit score is one of the primary criteria for providing personal loans. As it is an unsecured loan; thus, banks ensure that the borrowers have a sound credit history. While every financial institution has different requirements of credit score, generally a CIBIL score of 750 is considered an ideal score for getting a personal loan. You must thus regularly keep a check on credit score to maintain and improve the credibility.
  3. Multiple loans: Before applying for a new loan, make sure that you have paid your existing loans. It is because banks mostly keep an eye on the debt-income ratio. If you have an existing loan in your name, it can reduce your chances of getting a loan approved. It would be best if you at least maintain 1 six month gap between successive loans. Banks check the income- debt ratio to ensure that borrowers repay the loans on time.
  4. Checking loan amount: You should never ask for personal loans for a higher amount. Although you can get a personal loan up to Rs. 75 lakhs depending on your income and repayment capability it would be wise if you use an online eligibility calculator. Using an online eligibility calculator to determine the loan amount can help you to get a better idea about the loan amount that you would be able to repay on time, thus improving your chances of getting a loan approved without any hassle.
  5. Providing accurate information: If you are providing false information to the lenders or if you try to manipulate the lenders, then banks may reject the application. It is difficult to hide any information from them as they cross-verify all the details of the borrowers before providing the loans.
  6. Maintaining job stability: You must try to avoid frequent switching of jobs as banks provide loans if you have a stable job and sources of income.
  7. Avoiding multiple enquiries: Making hard enquiries indicates that you are hungry for the credit. Thus, instead of applying for a loan with multiple loan providers, it would be best if you compare the interest rates and other charges of different institutions to decide the best bank for taking a personal loan. Making multiple enquiries affect your credit score and chances of getting a personal loan application rejected.

 Conclusion: It is crucial to identify the right product at lower interest rates, and thus you must make a detailed comparison regarding interest rates, processing fees and the process of getting a loan from different institutions. What is equally important is to provide precise information to the lender and maintain a good credit score with stable income sources to avoid rejection of loan application.

Summary:Follow These Tips To Get Your Personal Loan Approved

Personal loans are one of the popular choices of availing finance to meet personal as well as business requirements. It is an unsecured loan, available for self-employed and salaried professionals and does not require any security or collateral. However, getting a personal loan isn’t that easy.

Here are some tips to get a avoid rejection of personal loan application:

  1. Checking eligibility of financial institutions: Every bank has a specific eligibility criterion related to age, income and credit score and you must check the eligibility criteria before applying for a loan .
  2. Credit score: While every financial institution has different requirements of credit score, generally a CIBIL score of 750 is considered an ideal score for getting a personal loan. 
  3. Multiple loans: Before applying for a new loan, make sure that you have paid your existing loans. It is because banks mostly keep an eye on the debt-income ratio. 
  4. Checking loan amount: Using an online eligibility calculator to determine the loan amount can help you to get a better idea about the loan amount that you would be able to repay on time.
  5. Maintaining job stability: You must try to avoid frequent switching of jobs as banks provide loans if you have a stable job and sources of income.
  6. Avoiding multiple enquiries: Instead of applying for a loan with multiple loan providers, it would be best if you compare the interest rates and other charges of different institutions.

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