Applying for an instant personal loan can be a quick way to get money when you need it urgently. These loans are approved quickly without the need of a lot of paperwork. But, to make sure you get the loan without any major issues, it is important for you to know what to do and what not to do while applying for an instant loan.
So, here is a brief guide to help you understand the right steps to take to increase your chances of getting the loan and avoid common mistakes.
Do & Don’ts while Applying for an Instant Loan:
The Dos of Applying for an Instant Loan
1. Check Eligibility
Make sure you meet the lender’s requirements such as age, income, and credit score.
2. Read Loan Terms and Conditions
Understand the repayment schedule, fees, and interest rates before you avail the loan.
3. Provide Accurate Information
Double-check that all the information you give is correct to avoid any delays or rejections.
4. Use an EMI Calculator
Use an online tool to see how much your monthly payments would be and make sure if you would be able to afford them.
Also Read: What is EMI & How is it Calculated?
5. Maintain a Good Credit Score
Pay your bills on time and keep your credit score high to get better loan terms.
6. Compare Different Lenders
Do research properly by comparing various lenders and finding the right interest rates and loan terms.
The Don’ts of Applying for an Instant Loan
1. Don’t Apply with Multiple Lenders
Applying to many lenders at once can hurt your credit score.
2. Don’t Overborrow
Don’t forget responsible borrowing. Borrow only what you really need and can pay back easily to avoid financial problems.
3. Don’t Ignore Fees
Be aware of all the fees involved like processing fees, late payment charges, and other hidden fees and penalties.
4. Don’t Skip Repayments
Missing payments can hurt your credit score and add extra charges.
Also Read: What is Loan Repayment and How Does It Work
5. Don’t Provide Incomplete Documents
Make sure all your documents are complete and correct to avoid delays or rejection.
6. Don’t Ignore Customer Reviews
Read reviews to know if the lender is reliable and has good customer service.
Tips for Improving Your Chances of Loan Approval:
These are some common loan approval tips which would help when applying for a loan:
- Pay off any existing debts and avoid missing any payments to improve your credit score
- Maintain stable employment as lenders prefer people who have a steady job.
- Have your ID, income proof, and address proof handy
- If you have extra income, include it in your application to make it stronger.
Common Mistakes to Avoid While Applying for an Instant Loan
You must avoid the following mistakes when applying for a loan:
- Ignoring loan terms and conditions- You must read all the details to understand the loan terms completely.
- Not checking credit score- Be aware of your credit score before applying fo a loan so that you can avoid getting rejected.
- Overestimating repayment ability- You should only borrow what you can comfortably repay to avoid financial trouble.
How to Apply for a CASHe Personal Loan
The loan application process with CASHe involves the following steps:
- Step 1: Download the CASHe app from the App Store or Google Playstore.
- Step 2: Sign up with your email and mobile number.
- Step 3: Fill in your personal details, job information, and bank details.
- Step 4: Upload your ID, address proof and income proof.
- Step 5: Choose your loan amount and tenure.
- Step 6: Review everything and submit your application. If approved, the money would be sent to your account.
FAQs
1. What is an instant loan?
An instant loan is a quick personal loan that gets approved and disbursed within a few hours or a day, for urgent financial needs.
2. What are the common uses for an instant loan?
People use instant loans for emergencies like medical bills, home repairs, travel expenses, or any unexpected costs.
3. What should I avoid while applying for an instant loan?
Avoid applying to many lenders at the same time, borrowing too much, ignoring fees, missing repayments, and giving incorrect information.
4. How does my credit score affect my instant loan application?
A good credit score helps you get approved faster and get better interest rates, while a poor score can lead to rejection or higher rates.
5. How can I improve my chances of getting approved for an instant loan?
Improve your credit score, have a stable job, keep your documents ready, and show any extra income you have.
