Applying For Personal Loans? Here Are 5 Tips to Get It Approved Easily
Do you need funds to meet a financial crisis without getting a credit card? Then apply for a personal loan as it is a better alternative to get instant funds. A personal loan is a debt that you can borrow from financial institutions without an asset serving as collateral guaranteed to it. These loans are offered at comparatively lower interest rates and are offered promptly, considering factors like your creditworthiness, net monthly income, amongst others.
You can save yourself some time and apply for a personal loan online through several reputed financial institutions in India that offer essential net banking services. Applying for a personal loan is a simple task, but you need to be certain of a few things to get it approved easily.
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So, here are five simple tips that can help you get your loan approved easily:
1. Maintain a good credit score
A good credit score is essential not just for your loan approval but also for your interest rate, creditworthiness, and many more things. Thus, maintaining a good credit score must be your priority when taking a personal loan. A credit score ranges from 300 to 900; anyone with a credit score lower than 700 can face difficulties in getting their loan amount approved. Want to increase your credit score? You can repay and close all your previous debts, make timely credit card payments, pay loan instalments on time and practice more such things that make you look like a trustworthy borrower in the eyes of the money lending institution.
2. Meet the basic eligibility criteria
You must check the eligibility criteria before you apply for a personal loan. Every financial institution has set parameters that make a person eligible for their services. So, firstly, to get your loan approved, you need to learn about those criteria and then make sure you fit under all of them.
3. Your EMIs should not exceed 40% of your monthly income
Before you apply for a personal loan, calculate the interest rate you will be paying, as this rate determines your EMI and helps you plan accordingly. With the help of an EMI calculator for personal loans, you can evaluate the exact repayment amount that you will have to pay on your borrowed money. If your EMIs exceed 40% of your net monthly income, your application might get rejected. Thus, you need to make sure you apply for an amount according to your income.
4. Don’t make multiple applications
In an emergency or a financial crisis, you might feel the urge to apply for personal a loan with multiple lenders. First, you must know that an inquiry is initiated whenever someone applies for multiple loans. Then, that further leads to an exchange of your information between the lending institutions and credit report bureaus. Multiple applications will affect your creditworthiness and make you look like a ‘hungry borrower.’ Thus, making you look desperate for funds. As a result, it will decrease your credit rating and increase the chances of your application being rejected.
5. You should not have taken a loan in the last six months
Make sure there is a gap of at least six months when you avail for another loan. If not, it portrays or conveys a message that you aren’t able to manage your finances well. It even questions your creditworthiness and makes them doubt your ability to repay the previously borrowed money. Therefore, it would be advisable to apply for a personal loan and only when you are in dire need of it.
Besides, you can apply for a personal loan and get it approved easily from reputed financial institutions like Axis Bank, which have simpler eligibility criteria and are available at affordable interest rates. Browse through their online website to apply for personal loans starting from INR 50,000 up to INR 15,00,000 and meet your needs effortlessly!