Given the unprecedented economic slowdown and curbs on day-to-day functioning, financing remains a critical concern for many. Lending institutions are thus simplifying fund accessibility for individuals via financing options like quick personal loan provided online for the convenience of customers. Individuals can thus also apply for such credit and other services online via the official website or mobile application of their respective financial service provider.
As a result, availing a loan has become easier than ever. Borrowers can thus avail a quick personal loan online without much hassle. Nevertheless, to receive quick approval for the advance, they must stand adequately eligible. One can, therefore, prepare to avail the loan by utilising a few handy tips mentioned below.
5 tips to avail a quick personal loan
Borrowers must keep in mind the following few pointers for quick financing of an instant personal loan.
Improve eligibility with debt reduction
When assessing a loan application, lenders examine the individual’s Fixed Obligation to Income Ratio or FOIR, which lends them an insight into the borrower’s repayment capacity. It refers to the existing fixed monthly liabilities as a percentage of one’s monthly income.
Repaying the existing loans improves an individual’s FOIR, which ultimately increases his/her repayment capacity. Applicants with a lower FOIR stand a chance to secure a credit quicker compared to others.
Take measures for credit score improvement
Before applying for a personal loan, borrowers must review their credit report and the resulting score. The report might carry discrepancies, which can hurt their credit score. One thus needs to apply for a rectification pre-emptively for timely resolution. Also, applicants must review their credit score to check if they are meeting the required criteria or not.
Doing so will keep their credit score and credit history updated and increase their chances of securing a loan in minimum time. Other measures to take for credit score improvement include timely debt repayment, maintaining an ideal debt-to-income ratio, etc.
Keep the necessary documents handy for Personal Loan
To fast-track a loan application process, individuals must keep the required documents ready. Once applied, they need to upload these documents online for lender verification.
Individuals can keep the KYC documents (Aadhaar card, Voter ID card, etc.), income proofs, and bank account statements scanned and ready to submit when required.
Apply for Personal Loan according to your repayment capacity
While availing a personal loan for any financial issue, borrowers must apply according to their repayment capacity. It will not only increase their chances of securing credit but also help them to repay it affordably.
Select financial institutions offer up to Rs.25 lakh as instant personal loans at affordable interest rates and a flexible tenure of up to 60 months. Additionally, the approval process for such loans is also quick, and individuals can receive the funds within 24 hours.
Also read about home loan here
Look for pre-approved Personal Loan offers
When looking for a quick personal loan, applying via pre-approved offers can be handy. Such offers reduce the time involved in loan approval and processing. Borrowers can thus go through product details of different lenders, and learn about pre-approved personal loans before making the application.
Lenders like Bajaj Finserv also make financing hassle-free by providing pre-approved offers. One can avail these offers on several financial products, like personal loans, credit cards, business loans, etc. Customers can check their pre-approved offer by providing their essential contact details.
Following this, individuals can submit the loan application along with essential documents in the following few steps–
Step 1: Visit the official website of the lender.
Step 2: Duly fill the loan application form, and submit it.
Step 3: The lender performs an initial verification and then approves the application if all the requirements are aligned.
Step 4: Once the quick personal loan application is approved, a borrower needs to submit the essential documents.
Step 5: After a detailed verification of these documents, the lender then disburses the loan amount.
Before moving ahead with their personal loan application, individuals must also check the required eligibility criteria.
Eligibility criteria for a personal loan
Here are the standard eligibility criteria that an individual must fulfil to avail the advance –
- Age: Between 23-55 years
- Credit score: Must be 750 or above
- Employment status: Must be employed with an MNC, a Public or Private limited company
- Monthly income: The criteria of monthly income vary based on the applicant’s city of residence.
Quick personal loans allow borrowers to conveniently fulfil any financing requirements, be it a planned one or requirements during an emergency. The current RBI report also reflects how personal loans are growing as a preferable credit option in the Indian market with a growth of 17% by the end of February 2020. However, borrowers should be smart and follow the above-mentioned tips to take out a personal loan quicker.