Last Updated on March 10, 2024 by admin
Personal Loan online instant approval has been creating a constant buzz in the lending market over the last few years. Personal Loan requirements have increased due to the rise in the financial obligations of individuals. To meet all the financial requirements and obligations, an individual opts for a Personal Loan. A Personal Loan is a type of unsecured loan offered by a lender for a pre-decided tenure. A Personal Loan depends on several factors such as income, age, employment, credit score, etc. Furthermore, a Personal Loan can be used to meet any kind of financial requirements such as higher education, wedding, travel, home renovation, etc. Below are a few factors that will help you in getting a Personal Loan online instant approval.
- Eligibility
There are various lenders in the market offering Personal Loans. You can choose the most suitable lender which matches your requirements. These lenders have different eligibility criteria and requirements that a borrower must fulfil to avail of the loan. Following are a few of the eligibility criteria – you must be between 24 and 58 years of age, you should be in current employment for a minimum of 6 months and you should have a minimum of 24 months of total work experience with more than ₹40,000 monthly income. Lastly, you should have a credit score of more than 750. You can use the Personal Loan amount eligibility calculator to avoid any delay or rejection and get a Personal Loan online instant approval.
- Loan amount
Before applying for a Personal Loan, you must consider all the factors that impact your repayment. If you are planning to avail of a higher loan amount, you must meet all the eligibility criteria set by the lender. A borrower with a higher credit score has a higher chance of getting a loan at a lower interest rate. A higher credit score indicates that a borrower is creditworthy and has made all the repayments on time. Another crucial factor that you should keep in mind is applying for multiple loans at the same time. Applying for multiple loans simultaneously indicates that the borrower is credit hungry and highly dependent on credit.
- Credit score
A credit score indicates your ability to repay the loan amount at the pre-decided tenure. A credit score is a three-digit number provided by the credit bureaus agencies such as Equifax, TransUnion CIBIL, Experian, and CRIF Highmark. A borrower with a credit score higher than 750 is considered excellent and has a higher chance of getting a loan at a lower interest rate. Whereas a borrower with a credit score lower than 750 needs to improve his/her credit score to increase the chances of getting a loan at a lower interest rate. You can improve your credit score by making regular payments on time.
- Debt to income ratio
The debt-to-income ratio indicates the percentage of the income used for paying monthly debts. An individual with a higher debt-to-income ratio indicates that the majority of his income is used for paying his debts. Whereas an individual with a lower debt-to-income ratio is considered a low-risk borrower as he/she ability to repay the loan without any default. An individual with a higher debt-to-income ratio is likely to avail of a loan at a higher interest rate.
- Longer loan tenure
A longer loan tenure indicates that your EMIs (Equated Monthly Instalment) are divided over that time, and you will have enough time to plan your repayments. You can use the Personal Loan amount eligibility calculator to plan your monthly EMIs. There are three major factors that are used for calculating your EMI (Equated Monthly Instalment) – loan amount, interest rate, and tenure. You can adjust all these factors accordingly to plan your EMIs in advance.
- Information
To avail of a loan faster, you must ensure that all the information provided to the lender is correct especially while filling in all the documents. You must visit the lender’s official website to check all the requirements and documentation lists to avoid any confusion. This will help you in reducing the overall time of loan application. Also, before submitting the documents, you must check for probable spelling mistakes and inaccuracies to avoid inconvenience.
Also Read: What Is Maximum Tenure Allowed for Personal Loan Repayment Schedule?
Conclusion
As a borrower, you must focus on creating a good profile for improving your chances of getting a Personal Loan instantly. Forming good habits and disciplined actions such as paying your loan on time, selecting the right tenure, choosing the suitable loan amount, and maintaining a good credit score are a few of the factors that ensure a Personal Loan instantly. Also, you can go through the above-mentioned factors to plan your Personal Loan efficiently.
