Instant personal loans are a convenient way to access funds quickly. However, getting quick approval requires meeting certain criteria and following best practices. Here are some tips to help you get swift loan approvals.
Understand Your Credit Score
Your credit score is crucial when applying for an instant personal loan. Lenders use it to assess your creditworthiness. A high credit score indicates good financial management. It increases your chances of quick approval.
Lenders usually check you CIBIL score. This is your credit score issued by TransUnion CIBIL, one of India’s 4 credit bureaus. The CIBIL score ranges from 300 to 900, with 900 being the best score. Usually, having a score of 750 or more is considered ideal to be eligible for an instant personal loan.
Late payments can lower your score. So, ensure all your bills, including credit cards and utilities, are paid promptly. Additionally, try to reduce your outstanding debt. This is because high levels of debt can negatively impact your score. Regularly check your credit report for any errors. Raise complaints in case of any inaccuracies. Following these simple tips can help you maintain a healthy credit score.
Maintain a Stable Income
Lenders usually prefers individuals with stable income as it indicates their ability to repay the loan. To demonstrate a stable income, declare your primary and additional sources of income. For this, you can provide your recent payslips. Highlight your extra income from bonuses, freelance work, and rental property. This boosts your loan eligibility, helping you get swift loan approvals and disbursals.
Stability in employment also matters. Frequent job changes can be perceived negatively by lenders. Maintaining steady employment will improve your approval chances. It indicates that you have a stable source of income, establishing your repayment capabilities. This lowers the risk of default, boosting your loan eligibility. If you have stable employment, you are likely to get a loan faster.
Keep Your Documents Ready
Having all required documents ready can significantly speed up the approval process. Some essential documents you may be asked to furnish include:
- ID proof: Any one of the following
- Aadhaar card
- Passport
- PAN card
- Ration Card
- Voter ID
- Driving Licence
- Address proof: Any one of the following
- Electricity, water, or gas bills
- Property tax receipts
- Rental agreements
- Income proof:
- Recent payslips
- Bank statements
- ITR filings
- Employment proof:
- Offer letter
- Employment certificates
- Contracts
Keep these documents organised and easily accessible. Submit them promptly when requested. You may be asked to provide some additional documents besides the one listed here. Be sure to get a complete list of paperwork required before applying. This makes the application process smooth and helps you avoid any delays in approval.
Choose the Right Lender
Different lenders have varying approval processes. Research and choose a lender known for quick approvals and favorable terms. Compare interest rates to find competitive options. Read customer reviews to gain insights into the lender’s reliability and speed. Also, ensure you meet the lender’s eligibility criteria before applying. For this, you can use a personal loan eligibility calculator. This digital tool enables you to quickly check the offer you may be eligible for. The calculation is based on your income and other personal details. It helps you save time and effort.
Apply Online
Online applications are generally faster than in-person or paper applications. Many lenders offer instant personal loans through their websites or mobile apps. Digital submissions are processed more quickly than manual ones. You can also enjoy the convenience of applying from the comfort of your home at any time. Some lenders even provide instant pre-approval or feedback on your application. This can further speed up the process.
Opt for Pre-Approved Loans
If you have a good relationship with your lender, you may be eligible for pre-approved loans. Such loans are typically offered to existing customers with a good credit history. Pre-approved loans offer quicker approval since the lender already knows your creditworthiness. They often require minimal documentation. Such loans may come with better interest rates and repayment terms.
Limit Your Loan Amount
Asking for a large loan amount can increase scrutiny and slow down the approval process. Instead, apply for a loan amount that you can comfortably repay. Assess your needs carefully and only borrow what you need, not the maximum available. Ensure you can afford the monthly repayments. Also, factor in other financial obligations and expenses when budgeting. Simply, borrow exactly what you need and no more.
Maintain a Good Debt-to-Income (DTI) Ratio
Your DTI is the percentage of your income that is directed towards the repayment of your debt. A lower DTI ratio indicates better financial health. It increases your chances of quick loan approval. To improve your DTI, focus pay off your existing debts. Also, explore additional income streams. Avoid taking on new debts before applying for a loan as this can negatively impact your DTI.
Have a Co-applicant
Adding a co-applicant can improve your chances of quick loan approval. This reduces the risk for the lender as both applicants share the responsibility of repaying the loan. Ensure that your co-signer has a good credit score and stable income. Having such a co-applicant can result in better interest rates and repayment terms. Lenders view applications with co-applicants more favourably, which can expedite the approval process.
Respond Quickly to Lender Requests
During the approval process, lenders may request additional information or documents. Responding promptly can expedite the process. Regularly check your email and phone for lender communications. Have all necessary documents organised and ready for submission. If you haven’t heard back from the lender within a reasonable time, don’t hesitate to follow up. Prompt responses can significantly speed up the approval process.
Securing quick approval for an instant personal loan is possible with these tips. Research the loan options from various lenders on financial marketplaces. For example, apply for an instant personal loan on Bajaj Markets and choose from over 20 lenders. Compare the interest rates, tenure, and eligibility criteria of each. This will help you find an offer that suits your needs. By following these simple tips, you can increase your chances of swift loan approval.
