When submitting a personal loan application, you must have so many thoughts or wishes in your mind regarding the use of the loan amount.
People take a personal loan to fulfill their financial needs, as banks disburse a personal loan application within 24 to 72 hours.
Within one’s personal finance management, this factor makes a personal loan beneficial in an emergency.
Considering the facts, we can estimate that rejection of a personal loan application can be frustrating and even dangerous in crucial times. Therefore, you should focus on all important personal loan aspects while applying for one.
Are you planning to get a personal loan but afraid of its rejection? Don’t worry; you need to focus on some important points before applying for this loan.
Submitting A Personal Loan Application? Here Are The
Points To Remember
You can avail a personal loan can very easily within a few hours if you follow the procedure carefully. The below-mentioned tips will save you from committing some common errors while submitting a personal loan application:
Ensure that your purpose is acceptable
As you know from the name itself, a personal loan can be used for various purposes by the borrower.
You can spend the money on home renovation or wedding, for buying your personal stuff or traveling, or in case of a medical emergency.
Once your personal loan application is approved, the bank won’t mind how and where you spend the money. However, you have to keep in mind that you can’t use this money to fund any illegal activity.
Fulfill the eligibility criteria
Eligibility criteria are among the most important points, which you should not neglect at any cost when applying for a personal loan.
These include certain rules that every borrower must comply. You can check the whole criteria of a personal loan application on the bank website in advance.
Alternatively, you can directly ask a loan executive at the bank to help you with an in-depth understanding of the various terms and conditions.
Lenders are very strict about eligibility criteria, as personal loans don’t require collateral security. Banks and other lenders have some common terms of eligibility, such as:
- You must be an earning individual with a minimum monthly income of 25,000 to 30,000/-
- You must be self-employed or a bona fide employee of an organization or a business owner.
- Occupation and age are also defined by different lenders.
Maintain a considerable credit score
The credit score is very important for you to be eligible for a personal loan.
As the lender doesn’t know you personally, they check your credit history via your credit report. It is their responsibility to check that a borrower is financially able to pay off the loan.
Therefore, for the approval of your personal loan application, it’s crucial to have a good credit score. This increases your chances of getting your loan application accepted by the bank.
One or more lenders may still be ready to give you a loan but certainly at a high rate of interest.
Carefully select the lender or bank
You should be very careful while selecting a lender when looking for a personal loan.
Although most banks provide a personal loan, you must know that too many loan applications within a short span of time can adversely affect your credit score.
If you need a huge amount, then you should submit your personal loan application to lenders like Indiabulls personal loans, for higher chances of getting quick loan disbursal.
Prepare the essential documents
The bank will ask for a few important documents when you apply for a personal loan. If you failed to produce any of these documents, your loan application could be rejected. Some of the essential documents are:
- Identity proof (Voters ID/ PAN card/ Passport/ Driving license)
- Residence proof (Utility bill/ Passport)
- Salary slips of last 3 months (in case of employees)
Apply according to your need
You should select the amount of a personal loan strictly in accordance with your need(s). It’s common human nature to ask for more than the requirement, especially in money matters.
You might think of borrowing a few extra bucks for fulfilling your additional wishes. But remember, the amount is also a vital factor in the acceptance or rejection of a personal loan application.
So, you should stick to your needs.
Properly Manage finances
It will eventually help in strengthening your credit. For the management of your current finances, check your credit history for the last 12 months, the payment history of credit cards, and the balances.
Also, don’t be a credit hungry, repay your loans on time, and make a rule to pay the balances on credit cards on time.
Verify the details
Carefully check all your personal and financial information before submitting a loan application form.
Nowadays, most of the personal loan application forms are filled online, which can enhance your chances of committing one or more typing errors.
These errors, especially in personal details, can become problematic if the details provided by you don’t match with those in your supporting documents.
It’s good to be vigilant while filling out the key details in the form.
You have to be honest in every matter that is linked to your personal loan application.
If you are facing any difficulty or any other issue fulfilling the loan criteria, then you must discuss it with your loan executive.
Everything should be transparent between the two parties, as a lie or false information can cause rejection of your loan application.
Know your worth as a borrower
Understand the importance of being a borrower. Banks provide loans for gaining interest on the principal amount, which helps in maintaining the money flow.
So, you should look into multiple offers available in the market, interest rates, and duration of repayment before submitting your personal loan application.
Be wise and patient enough to choose the best out of them all.
If you can remember these tips, you can easily get the approval on your personal loan application. Some of the lenders you can contact for a personal loan are Indiabulls personal loan, SBI personal loan, and HDFC personal loans etc.
Choose a lender that suits your needs the best. Go ahead! You are now ready to submit an application.
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