6 Tips for Getting Your Personal Loan Approved A personal loan is a good way to get fast cash to meet your personal financial needs including wedding of a son/daughter, child's education, home renovation or any other expenditure. It helps people overcome a temporary shortfall in funds and meet their financial liabilities with ease. However, banks and lending institutions have set their own eligibility criteria for potential loan borrowers. Many loan applications get rejected as borrowers are not able to fulfill the specific requirement criteria. If you are one willing to get a signature loan to deal with personal financial needs, here are 6 key factors that will assist you in getting your loan application approved. 1. Check the loan eligibility criteria before applying: Before applying for
a personal loan, it is good to check the loan eligibility criteria defined by the respective bank from where you wish to get a loan. Most banks provide loans to applicants of specific age group, preferably between 21 to 65 years of age. Also you must meet the minimum income requirement as specified by the bank. Additional, you should not have outstanding defaults of loans or on credit cards. 2. Check your credit score: Credit score is a three digit number that
defines your financial health. Your credit score is based on your pervious loans and credit history. If you have a poor credit score while applying for a personal loan, your application may get rejected. You must pay your credit card bills and EMIs on time to obtain a good credit score which is 750 and above out of 900. A good credit score not only increase your chance of loan approval but also helps you land an attractive interest rate. 3. Avoid multiple applications: If you think that applying for a signature loan from various banks and financial institutions is the right thing to do, you are wrong. Most lenders keep a check on this and may doubt your intention if you have made loan requests at various banks. Loan application requests at multiple banks may reject your loan application at banks and will also affect your credit score badly. 4. Provide factual information: Banks often verify the information provided by the application in the loan application form. This is why it is always advised to provide all the genuine information about your annual income, residence details, past loan details, etc. to fasten your loan approval process.
5. Aim for a realistic loan amount: Instead of applying for an enormously higher amount of personal loan, it is good to borrow only the amount that you can actually pay off later without stressing yourself. Loan providers also check your income and repayment ability before approving a loan. Hence you must aim for a realistic amount to avoid a loan rejection. 6. Maintain job stability: Applicants having stable jobs and fixed income are more likely to get personal loan approval by banks and lending institutions. Therefore, it is good if you avoid switching jobs if you are planning to get a loan anytime soon. Job stability represents steady source of income which means you can pay future loan debts with much ease. Whereas if will keep on changing job, your loan application might get rejected by the lender due to the lack of stability. There are essential aspects that you must take into account before applying for any loan. In addition to this, you should not have more than 30% of income spent towards EMIs and you should not have availed any unsecured loan in the past 6 months. Moreover, you must also have a proper knowledge about the loan application process, eligibility criteria, repayment options, and other factors. This will reduce your risk of loan rejection and you can get a personal loan from the authorized bank without much hassle.