In terms of access to funding, there are few financial options that can be compared to a personal loan. These types of loans enjoy a great deal of popularity today – they are unsecured, which means you don’t have to pledge any asset or collateral, they are easy to avail of, and you can get one with very little paperwork.
Another key benefit of personal loan is that the sanction comes with very few spending restraints. You can use the money towards any obligations or needs, be it addressing medical emergencies, renovating your home, or consolidating high-interest credit.
If you are looking to get a personal loan to manage your finances, here are 5 simple tips that can get you faster approval.
To get quick approval, the first step you must do is meet your lender’s personal loan eligibility criteria. These are a set of variable factors that help your bank or non-banking finance company (NBFC) decide if you are qualified to get the money you need.
For instance, Bajaj Finserv, one of India’s leading NBFCs, requires its customers to meet the following criteria:
Lenders often gauge an applicant’s risk before approving a personal loan and employment history plays a major part in this. To give yourself the best chance of getting your personal loan application approved, ensure that you’ve maintained a stable employment history and have sufficient balance in your bank account to fall back on. Also, avoid applying if you’ve just switched jobs or are unemployed as it increases your chances of being rejected.
Your credit score forms another essential part of the personal loan eligibility criteria and most lenders require a good credit score i.e. at least 750. This is deemed as an acceptable score; but, to get quick loan approval, it is best if your score is closer to 900. High scores indicate creditworthiness and are a sign of efficient debt management on your part. In fact, some lenders may even offer better terms on your personal loan when you have a high credit score, as you come across as a reliable borrower.
Your debt to income ratio is the percentage of your monthly income that is devoted to repaying existing debt. Ideally, it is best to maintain a ratio of 40% or less as this indicates to lenders that you can accommodate additional debt without being overburdened.
When it comes to getting quick approval for a personal loan, having all the documents ready helps greatly. Fast submission of this paperwork means that the lender can evaluate your application quickly. Failing to do so can result in repeated requests by the lender, which is time consuming and can result in delays.
Choose lenders who offer online personal loan application
Applying for a personal loan online is among the quickest ways to get approval as it minimises the effort required to file a simple online application form. Here, there are no physical branch visits or lengthy queues, which usually causes delays. Additionally, lenders such as Bajaj Finserv allow you to enjoy instant personal loan approval, within 5 minutes, when you apply online.
Following these 5 tips helps you enjoy quick approval on a personal loan and get access to funding with ease. To further simplify the entire experience, consider opting for smart options such as a Bajaj Finserv Personal Loan. Here, you get access to funding up to Rs.25 lakh at attractive personal loan interest rates.
What’s more, you can opt to repay the loan over a tenor ranging up to 60 months or even opt for the Flexi Personal Loan to enjoy added flexibility. This feature allows you to borrow multiple times, as per your needs and you only pay interest on the amount that you utilise. Further, you can opt to pay interest-only EMIs and reduce your monthly instalments by up to 45%, while making part-prepayments whenever possible. All these benefits greatly add to your borrowing experience.