Here are 5 tips to get the green light on your personal loan. Before applying for a personal loan, the applicant must self-check personal loan eligibility criteria. Being self-prepared will only speed up the process of loan disbursement.
Every loan has a process. It starts with submitting the application and ends with the repayment of the loaned amount. When it comes to the personal loan procedure, there are couple of pointers you can address. This will increase the odds of getting your loan approved with ease.
Although you have no clout when it comes to forcing an approval, you can always better your chances by being better prepared.
1. Look at your personal loan eligibility:-
Your eligibility for a loan is perhaps the first factor that will be considered. You should check personal loan eligibility to see where you stand. Financial institutions look at the age and location of the applicant. They also look into things like location, income, job stability, etc. If one come across as a stable earner on paper, then they are more likely to get the loan sanctioned. If for any reason, one falter in maintaining a steady job, loan application may get rejected. People who are closer to retirement may not get personal loan easily. If one is facing such obstacles, better is to frame strong replies before approaching a bank.
2. Do your Research:-
Before you dive right in, you have to do ample research about the prevalent loans in the market. Many companies and institutions have options that are flexible. Personal loans may not be tailor-made for an individual, but if they are flexible, it helps. Flexibility in loans are perfect for individual applicants. So, do your hunting and choose a lender which is offering you the best loan.
3. Get your Credit Score in Line:-
Credit score and credit history are crucial factors when seeking a personal loan approval. Banks verifies ones financial history. Credit score is effected by ones financial history. Person who has other loans outstanding will have lower credit score. If past loans were not paid on time, this also effects ones credit score. Before approaching a bank for personal loan, knowing ones credit score is advisable. One must approach CIBIL to get ones credit score. If one approach a bank with ones credit score (whether good or bad), decision on issuance of personal loan will become very fast.
4. Have a Plan:-
One must make sure that before approaching a bank for personal loan, the use of funds is clear. When bank asks, “what you will do with loan?”, the answer must be specific and firm. If banks gets a hint that one is taking personal loan just to satisfy ones temptation of reckless spending, loan approval becomes difficult. Banks would like to know where the money is going. They do this to ensure that they are not issuing a loan which later will become a bad debt.
5. Use a Calculator:-
Unlike in school where the use of calculators was discouraged, one must use good personal loan EMI calculator. Before one applies for personal loan, use of such calculators gives great clarity. These calulators makes person understand how easily one can repay the borrowed money. These calculators can be sued to does ones own permutations and combinations. One must know ones best matching principal amount, interest rates, and tenures before approaching a bank. In this case one will be in a better position to determine how affordable is the loan. Whether its worth taking the loan or not…
With these tips in mind, you will have an idea about what institutions consider when approving a loan application. This will help in grooming your financial plan, resulting in a quick loan approval.
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