7 easy steps for quick Personal Loan approval
Personal Loan is one of the unsecured loans that come at higher interest. While applying for a Personal Loan, you need to go through heavy documentation. The loan fund can be utilized for any purpose such as paying off medical bills, education fees or other personal expenses. Personal Loan is also known as a collateral loan because the bank doesn’t ask for any collateral or security. If you’ve applied for a personal loan then how will come to know, you’re close to approval? No worries, if you follow these simple 7 steps, your loan will be approved and disbursed instantly.
- Eligibility Criteria: Before applying, once take a glance at Eligibility criteria of a Personal Loan. Today most sites have their digital eligibility calculator on which you can figure out your loan sum and monthly payments etc.
- Credit Score and Credit History: Your Credit Card and Credit History both play a very essential role in a Personal Loan. Different banks have different standards for rating credit score. If your CIBIl is 700 to 900, then you’re on the perfect track. According to many people Personal Loan comes at the higher interest rate, that’s true but have you wondered by Credit Score is the major part of a Personal Loan? Here’s the game you need to understand. Remember if you’re credit score is good, the bank may give you relief in your interest rates.
- Avoid Multiple Applications: Applying constantly for a Personal Loan can lead you to rejection. It also affects your credit score. Many banks check your application status as well.
- Repayment Capacity: This is compulsory to know your repayment capacity. Only apply for a Personal Loan when you know you can repay the loan fund. Applying for a big sum may lead to disapproval. It’s essential to maintain a good ratio between your salary and EMIs from all other loans. Monthly payments mean being a borrower you’re paying for your borrowed sum in the form of EMIs but if your EMIs become debt for you means it going to be hit your credit history.
- Job Stability: As we know your income and credit score both are the vital factors in a Personal Loan. The bank always checks your income sources and your job stability as well. Both your income and credit score displays your repayment capacity and credit history. Many banks such as SBI wants an applicant should have a 2 years experience of the same company or organization.