Availing of an instant personal loan online may be the right decision during a financial or medical emergency. But even an instant loan may get rejected due to a number of reasons.
To help you get your cash loan within a week, we have listed 5 tips you should use to get your personal loan approved without any unnecessary delay!
Tips to get your instant personal loan approved faster
1. Provide accurate & necessary documents
If you’re applying for an instant personal loan online, you will be asked to provide salary slips and IDs along with some additional personal information. But if you’re applying for a personal loan at a bank, you will have to provide additional information like details of all your income sources and a rental agreement with your permanent address proof in case you’re living on rent.
Submitting all accurate and necessary documents at once will help your application get approved faster and make the whole process hassle-free.
2. Have a good credit score
Having a good credit score can help significantly in getting your cash loan approved ASAP. A credit score of around 650-700 is a green flag for any lender. But having a credit score above 750 is considered an excellent score which can help you get your loan approved faster.
When providing an unsecured loan, the lender has no security like your personal property that it can seize in case you default on the loan. That is why a good credit score is essential as it shows that know how to manage your finances and can be trusted with a loan. The lower your credit score, the higher the interest rate you will pay.
If your credit score is below 600, start paying your EMIs of existing debt on time and try not to default on your credit card dues. Your credit score is your financial reputation, it takes a lot of discipline to maintain a good score and one missed payment to drag it down.
3. Apply with one lender.
When applying for a personal loan online many people make the mistake of applying with multiple lenders, thinking they are maximising their chances of getting a loan. But it has the opposite effect!
By applying with multiple lenders, you may come off as a desperate person under financial stress which can be a red flag for a lender. And not to forget, the big drop in your credit score if lenders reject your application.
Find out the eligibility criteria of your lender and apply with them only if you match their requirements.
4. Apply online
Today applying for an instant personal loan online has become easy and quick. In a matter of a few clicks, you can get approved for a cash loan from the comfort of your home.
Here’s how you can apply for an instant personal loan online:
You will get a confirmation message from the lender after submitting your application with all the necessary details and documentation. The lender will decide whether to approve or deny your loan application after reviewing your profile and documents. Your lender will also keep you updated on your loan application via emails, text messages etc. And after you have completed all the necessary documentation, the loan approval procedure may take a week. The pay-out may follow in a day or two after your lender approves it.
5. Have a good bank balance
If you don’t have a good bank balance, you’re not going to be a lender’s favourite candidate. We recommend you have a good bank balance as lenders, especially banks, check your average monthly balance while considering your loan application.
Banks like to play safe and a good bank balance shows your repayment capacity. Hence, by maintaining a good average monthly balance, you increase your chances of getting approved.
Candidates with higher average monthly balances are provided facilities like instant personal loans, pre-approved personal loans and pre-qualified personal loans by their banks. So if you’re sceptical of instant cash loan apps, you can avail of personal loans provided by banks.
