A personal loan is an ideal product for immediate cash needs. Most of them are not secured by collateral which makes them an ideal financing option. The leading Indian banks offer flexible tenure up to 60 months with a balance transfer facility at affordable rates.You can use the loan fund for wedding expenses, dream vacation, huge medical bills or renovating your home. This explains why 77% of working Indians depend on personal loans to make ends meet. The money can also be used for emergencies like sudden hospitalizations, disaster management or paying off credit card debts before deadlines. So, try to maximise your odds of getting the money disbursedquickly. It will be extremely useful and helpFew simple tricks and tips can help you achieve this goal. Take a look.
1. Get your Credit Score Right
This is avital factor that lenders evaluate before disbursing a personal loan. Maintain ascore above 700-750 which is considered ‘good’.Try not to fall below 500 that can lead to a quick loan denial. Do review the report from time to time. As many as 1 in 5 credit profiles might have inaccurate information. This mainly happens due to recording a default or listing an overdue payment or debt. So, check your CIBIL score at least 30 days before application.
2. Steady Employment History
In simple terms, your income should come from a reliable source. This offers assurance to the lender that you can pay the EMI without delays. Jumping from one job to another might create an impression that you will not be able to ensure fixed payments. Stay employed at one organization for at least 6 months to 2 years at a stretch before application. This will also help build a better bank balance. This will further encourage personal loan banks to process your application quicker.
3.Clear Existing Debts
Multiple repayment commitments increase the chance of an EMI default. Make sure your debt-to-income ratio is below 45%. Otherwise, it can lead to delays from the personal loan bank since there could be a possibility of a financial crunch. So, pay off all kinds of debts, both big and small. This will help lenders realise that that you pose less risk as a borrower during the hard inquiry. It will boost the chances of faster loan approval.
4. Up-to-Date Financial Documents
You will require a valid KYC, 3 months’ bank statements, net banking or debit card details to set up e-mandate and eSign/eStamp for faster disbursal. Make sure all the information is true to your knowledge. It will help the bank evaluate better which increases the chances of aninstant personal loan disbursal.
5.Avoid More than You Need
Be it the tenure or the loan amount, try to keep it small. This makes it easier to get the loans approved since the payback will not be difficult. Lenders will know that there are lesser risks and might approve even with a lower income. You can use the mobile application in case you do not wish to get a personal loan in bank amid a COVID situation. This further speeds up application to disbursal since the entire process would be online.
Show your previous interaction with the bank if you have a savings account or have made an investment through them. This is a good way to ensurequicker loan processing. It is also advisable to track your expenses and savings since these could help boost income proof.