Personal Loans have emerged as one of the most popular and versatile financial products of the current era, which has been marred by financial and economic instability all over the world. In such times, you need a stable source of finance which can help you tide over tough times because financial uncertainties have become an inherent part of modern lives and it is impossible to get rid of them. There could be some urgent expenditure that you need to incur or a long-cherished dream of yours that you want to fulfill but the financial instability might be hindering your path. The most useful option that you can exercise in such a situation is to apply for a Personal Loan from any of the multiple financial institutions operating in India.
All about Personal Loans
Personal Loans are an unsecured form of lending,i.e., there is no requirement for collateral to secure the loan amount. These loans are offered by financial institutions to help you take care of any financial obligation of yours, personal or professional. These requirements could include foreign education, a dream vacation, a destination wedding or essential home renovation. Personal Loans lend you a significant degree of flexibility as they can be used for any purpose you desire without any prior approval from the lender, unlike any other loan. The maximum repayment tenurefor a Personal Loanis 60 months. Depending on your income and credit score, you can get a Personal Loan of up to Rs. 50 Lakhs. Personal loans can be availed by salaried individuals as well as self-employed professionals or sole-proprietor business owners.
With the rapid strides that technology has taken in the recent years, it is now possible for you to Get Instant Personal Loans Online. All you have to do is to fill an online application form with some essential financial and personal information. If your profile satisfies the requirements of the lender, your application would be approved instantly, and the amount would be transferred to your account in a few hours itself. Before you finalise any Personal Loan offer, make sure that you conduct thorough research online and only then shortlist a particular product.
How to Get a Personal Loan Approval Easily?
Due to the ongoing turmoil in the finance industry, in the wake of rising cases of NPAs (Non-Performing Assets), frauds, corruption, most lenders have now started following stringent eligibility criterion to screen applications for a Personal Loan. One red flag is all that they need to strike down any application. In such circumstances, you should prepare your application carefully to avoid rejection. Here are seven tips that can help you get Personal Loan approval easily:
- Check your credit score
Every lender in the market will check your credit score before even proceeding ahead with your Personal Loan application. In order to increase your chances of getting approved for a Personal Loan, your credit score must be over 700. So, you should check your credit score before applying,and if it is below the specified threshold, it is better to wait for some time and work towards improving your credit score.
- Analyse your requirements
You need to remember that the money you are going to borrow carries interest cost, so you should apply for only that much amount which you require. You do not want to appear credit hungry to lenders as this is a red flag for them. As a rule of thumb, the total EMIs that you have to serve in a month should not be more than 30% of your monthly income. Do not apply for unrealistic amounts whose EMI you cannot afford.
- Check the eligibility criterion
Every lender has a specific criterion that must be fulfilled in order to qualify for a Personal Loan. All the information is available online, so you must check the eligibility criterion specified by the lenders and apply with that lender whose eligibility criterion you are able to fulfill.
- Research and compare
Never rush into applying for a Personal Loan. Personal Loan repayment is a substantial financial commitment as the rate of interest is comparatively high. So, you must research online using various finance marketplaces, compare different products and then select one which meets your requirements the best.
- Avoid multiple applications
Every time you apply for a loan, it reduces your credit score and is reflected as hard query in your credit report. So, you must now apply with multiple lenders as it shows financial desperation. Carefully identify the lenders with whom you feel you have a higher chance of success and apply with only one or two out of them.
- Stable income
You must be working for last three years and at your current job for at least two years to show to the lenders that you are financially stable and will be able to repay the EMIs on time. So, avoid switching jobs to improve your chances to get a personal loan.
- Credit History
You must make sure that you repay all your credit card bills and loan EMIs on time when you are applying for a Personal Loan. It indicates a good credit behavior and enhances your chances of getting a loan.
When you are thinking of applying for a Personal Loan, you need to start planning in advance to improve your chances of getting the loan application approved.
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