5 Tips to Get Your Personal Loan Approved

One of the preferred ways of dealing with financial shortcomings or huge expenses like weddings and home renovation is a personal loan. Today’s millennial generation, especially, is very loan-friendly. According to a recent CIBIL report, there was an approximate annual increase of 30% in the number of people seeking loans between 2016 and 2018, with the growth in millennial borrowers being 58%.

Source: https://cleartax.in/s/personal-loan

How to get your personal loan approved

There are more steps to get an approval on a personal loan application than just personal loan eligibility. Here are the 5 major steps that you need to go through to get approval.

Credit score

Checking your credit score before you apply for a loan is crucial. You might think that it must be good if you have paid your bills on time. However, credit scores also take other aspects into consideration, for example, credit utilization ratio, someone else’s loan that you are guarantor for, etc. Credit scores are between 350-900, and any score above 700 is generally considered a good score. If your score is below 700, make efforts to improve it first and then apply for a personal loan.

Personal loan eligibility 

This basically includes the age, income bracket, credit reports, etc. which should be backed by documents. Every company will have its own specific conditions. You should apply only if you fulfill every single criterion on the list. Otherwise, your application might get rejected.

If you are looking for a no-hassle online personal loan with easy eligibility criteria, the Bajaj Finserv Personal Loan, available on Finserv MARKETS. Their personal loan eligibility criteria are as simple as this.

-          You must be a citizen of India.

-          You must be a salaried individual.

-          You must be between the ages of 23 - 58

-          To check eligibility, you can use the Personal Loan Eligibility Calculator on the official website of Finserv MARKETS, where you just need to enter your net income per month and the amount of EMI that you think you can pay.

Reasonable loan amount

Choose a loan amount and tenure wisely. The loan provider will scrutinise your ability  to repay as per your current income. If your selected loan amount is too high to be repaid with your current income within the given tenure, chances are that your personal loan application might get rejected. Choose a reasonable amount that you can repay easily.

Debt to income ratio 

It is the ratio of your income that you pay towards EMIs every month to your monthly income. If you have existing loans and are making payments of greater than 30% of your monthly income as EMIs for these loans, then your new application might not be accepted. Lenders will consider it a risk to give you loans as it will increase your debt burden significantly. Some will suggest you to not go for a new loan if you already have previous unpaid ones, but that’s not always possible. What you can do is bring down your debt to income ratio first.

Don’t send multiple applications

A lot of borrowers tend to send out multiple applications to multiple lenders to spread their chances out, which is totally understandable. However, that’s not how loan providers see it. They might feel that you are less likely to transact with them since you have applied to so many other places. Secondly, they might even assume that your personal loan application has been rejected by other lenders. Too many applications without any approvals can also affect your credit score. Hence, it is safe to send your application to just one lender at a time.

Keeping all of these points in mind, choose a credible and reputed lender, and make sure you cover all bases in your personal loan application. If you are confident that you have a comprehensive application, rest assured that your loan will be approved soon.

Bajaj Finserv Personal Loan

If you have begun the hunt for the ideal online personal loan, you must check out the Bajaj Finserv Personal Loan, available on Finserv MARKETS.

-          You can secure a loan of upto Rs.25 lakhs.

-          It comes with personalized pre-approved offers.

-          Approval could be as quick as 3 minutes and disbursal as swift as 24 hours!

-          The entire process is online and hassle-free with minimal documentation.

-          You can access your loan anytime, anywhere, 24x7. It doesn’t get more convenient than this.