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Personal Loan: How to Improve Your Chances of Getting Approved?
Posted on Wednesday, April 26th, 2023 | By Indusind Bank
A Personal loan can be a great way to fund a big purchase, consolidate debt, or handle an unexpected expense. However, obtaining an approval can sometimes be challenging. Lenders have strict requirements and qualifications that you must meet to be eligible for a personal loan.
If you’re looking to improve your chances of getting approved for a personal loan, here are some tips to follow.
- Check your credit report and score
Your credit report and score are the most important factors that lenders use to determine whether to approve your instant personal loan application or not. Therefore, it’s important to review your credit report and score before you apply.
You can obtain a free copy of your credit report and review it to make sure there aren’t any errors or inaccuracies that could lower your credit score.
A good credit score can improve your chances of getting approved for an instant personal loan and can also help you secure a lower interest rate.
- Compare lenders
Different lenders have different requirements and qualifications. Therefore, it’s important to shop around and compare offers from multiple lenders to find the best deal.
When comparing offers, pay attention to the interest rate, fees, and repayment terms. Search for a lender that provides an attractive interest rate and reasonable fees.
- Get a cosigner
If your credit score or income isn’t strong enough to qualify for a personal loan, consider asking a cosigner to help you. In the event that you are unable to make payments, a cosigner is someone who agrees to assume responsibility for the loan.
Having a cosigner can improve your chances of getting approved for a personal loan and can also help you secure a lower interest rate. However, keep in mind that if you default on the loan, your cosigner’s credit will be affected.
- Improve your debt-to-income ratio
The ratio of your debt to your income is known as your debt-to-income (DTI) ratio. Lenders use this ratio to determine whether you can afford to make payments on a personal loan.
To improve your debt-to-income ratio, consider paying off some of your debt or increasing your income. This can improve your chances of getting approved for an instant personal loan and can also help you secure a lower interest rate.
- Have a steady source of income
Lenders want to be sure that you’ll be able to repay the loan, so having a steady source of income is important. This income can come from various sources, such as employment, self-employment, or any other consistent income stream. Lenders may ask for proof of income, such as salary slips or tax returns, to verify that you have a reliable source of income.
Providing additional documentation may be necessary for those who are self-employed or have an inconsistent income to demonstrate that they have a reliable source of income. This could include bank statements, invoices, or contracts that demonstrate your income over time.
Some lenders like IndusInd Bank offer a more convenient mode of submitting your personal loan application digitally with zero paperwork requirement, making the process smoother and faster.
- Provide accurate information
When applying for an instant personal loan, it’s essential to provide accurate and complete information. Lenders will verify the information you provide, and any inaccuracies could lead to your personal loan application being denied. Make sure that you provide all the required information, including your employment status, income, and any debts you may have. Providing accurate information will increase your chances of getting approved for a personal loan.
In conclusion, getting approved for a personal loan isn’t always easy. But, by following these tips, you can improve your chances of getting approved and securing a loan with a competitive interest rate and reasonable fees. Remember to check your credit score, provide accurate information, improve your debt-to-income ratio, and have a steady source of income to easily get an instant personal loan.
If you’re looking for an instant personal loan at best-in-class rates, then do check out IndusInd Bank Personal Loan that is mindfully designed to fit into the varied needs of individuals as per their lifestyles. With IndusInd Bank, you get to enjoy instant approval, quick disbursal, and flexible repayment tenure options. That’s not all, its application process is 100% paperless with minimal or low processing fee*.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
