4,80,000 people visited this section in last 30 daysApply Online

Get Cashback of Upto ₹ 1,000* on Loans Apply Online

MyLoanCare Customer Ratings - 4.5/5.0 Apply Online

How You Can Increase Your Chances Of Getting A Personal Loan Approved

2021-06-08
3 Min Read
Author - Megha Khanna
How You Can Increase Your Chances Of Getting A Personal Loan Approved
226 views

A personal loan is a type of instalment debt that can be used to cover several personal expenses, and you can borrow it from any commercial bank or financial institution for various personal reasons. It is an unsecured loan as the lender or the lending organization doesn't ask for an asset as collateral. The money one borrows must be repaid on time, typically with interest.

Approval of a personal loan depends on how much of the eligibility parameters are fulfilled by the applicant. All these factors mentioned in the eligibility criteria are collectively responsible for the approval of a personal loan from a bank. Getting the easiest approval might indicate the lowest interest rate, the fastest way of acquiring the money, or the most convenient tenure.

Here are several ways by which you can boost the speed of personal loan approval from a bank.

Check your CIBIL score

A CIBIL score lower than the minimum score asked by the bank might make you a defaulter. Even if it doesn't, it affects the approval of a loan because a low credit score points towards your inability to pay off a loan in time. A score above 750 is usually considered to be high, but the approval score varies from bank to bank. Pay off any existing EMI or credit card bills, reduce your credit card usage, and don't spend beyond a certain limit. In this way, your credit score will remain high, and the loan would get approved faster and at rather enviable interest rates.

Income

Your income history is something a bank checks thoroughly before sanctioning a loan. Keeping a steady salary and income profile is very important because it maintains a detailed history of your employment status, which is very important for personal loan approval.

Be careful about your debt-to-income ratio

Basically, your debt-to-income ratio is your monthly debt divided by your gross income for the month.

Now, to be on the safer side, you should not use more than 40% of your income for EMIs. For instance, let's say that you earn a monthly income of INR 25,000 so, you should not spend more than INR 10,000 on EMIs. You must keep this as low as possible.

Apply with a Co-Applicant

If your income is low or the credit score isn't satisfactory, or you fail to fulfil certain eligibility criteria. In that case, you can alwaysapply for a joint personal loan from the bank at the same interest rate, with a co-applicant who has a comparatively better salary profile and more sound financial condition. This way, the burden of paying off is divided between and instead of one person making heavy repayment, it can be split, and the credit risk is inevitably decreased. This reduced risk acts as a catalyst to increase the guarantee and speeds up the approval of the loan.

Avoid Multiple Loan Applications

Try to avoid applying for the same amount of loan to multiple lending institutes. This factor not only denotes your poor financial condition but also increases the risk of a decline in credit score with every personal loan application rejection. It might just affect the chances of loan approval. So abstain from multiple loan applications.

Notwithstanding all these factors leading up to faster approval of the loan by the bank, HDFC Bank, Tata Capital, ICICI Bank, Bajaj Finserv IDFC First Bank are known for instant approval of personal loans, the average days taken for the disbursal being 1-2 days. Check the personal loan offers at an online marketplace like MyLoanCare where you can compare multiple bank offers at one place and choose the one with low rates, charges and better customer service.

About Author

Megha Khanna
Megha Khanna | Living, loving and laughing | She loves writing and reading in her free time. Working with MyLoanCare since 2019

What are you Looking for? Looking for a Loan? Looking for an Investment?

Trending Articles

Exciting Features Expected from WhatsApp in 2021
Exciting Features Expected from WhatsApp in 2021
READ MORE 2,429 VIEWS
WFH v/s WFO- Professional Life in the times of Covid
WFH v/s WFO- Professional Life in the times of Covid
READ MORE 1,795 VIEWS
Best YouTube Channels for Investments in 2021
Best YouTube Channels for Investments in 2021
READ MORE 1,704 VIEWS
How would you rate this Article?
Notification ×
  • Home Loan

    Home Loan at all-time low rates starting at 6.65%. Cashback of up to ₹ 1,000.

    Apply Now
  • Personal Loan

    Instant Personal Loan starting at 10.25% with Cashback of up to ₹ 1,000 .

    Check Offers
  • Gold Loan

    Instant Gold Loan starting at 9.50% with Cashback of up to ₹ 500

    Apply Now
  • Loan Against Property

    Best Loan Against Property Offers starting @ 7.20%. Cashback of up to ₹ 1,000*.

    Apply Now
  • Business Loan

    Collateral Free Business Loan Rates starting at 14.00% with Overdraft facility.

    Apply Now
  • Fixed Deposit

    AAA rated FDs with returns as high as 6.95%.

    Invest Now
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
Loader
Please wait while your information is being processed...