If you are looking to avail a personal loan, you need to keep in mind certain steps in order to get approval on the same. Your personal loan eligibility plays an important role when you plan to avail of this loan. Used for personal needs, this type of loan is readily available these days and can easily be availed without going anywhere.
All you need is your internet-enabled smartphone and the right application installed in it. Once you fulfill both these requirements, you are more than good to go.
(Note: This article is not promotional.)
- 1 What is an instant personal loan?
- 2 How to Improve Your Chances of Approval for an Instant Personal Loan?
- 3 Improve credit score
- 4 Understand the lender’s eligibility criteria
- 5 Pay off existing debts (if any)
- 6 Maintain stable employment and income
- 7 Provide necessary documentation instantly
- 8 How to avail of an instant personal loan?
What is an instant personal loan?
As the term implies, it is a type of loan that offers individuals quick access to funds for personal use. These loans are typically unsecured, meaning they don’t require any kind of collateral in order to secure the loan. Instead, the loan approval is primarily based on the creditworthiness of the applicant, income, and other financial factors.
Remember that the term “instant” suggests that the loan application, approval, and disturbed process are relatively fast and can be completed via digital platforms without needing to go anywhere. It is essential to note that while the approval process might be quick, the actual time it takes to receive the funds can vary depending on the lender and their processes.
How to Improve Your Chances of Approval for an Instant Personal Loan?
Improve credit score
This is one of the most crucial factors that lenders consider. Obtain a copy of its report, review it for errors (if any), and work on improving it if required. To positively impact it, pay bills on time, reduce credit card balances, and avoid new credit inquiries.
Understand the lender’s eligibility criteria
Different lenders have specific eligibility requirements for personal loans. Research and then choose the lenders whose criteria align with your financial situation to increase your approval chances.
Pay off existing debts (if any)
Reducing your existing debts, especially high-interest debts, can easily improve your debt-to-income ratio and enhance your creditworthiness.
(Tip: Keep in mind to first check personal loan eligibility online.)
Maintain stable employment and income
Lenders prefer borrowers with a stable job history and consistent income stream. Having a steady source of income makes you more reliable to repay the loan.
Provide necessary documentation instantly
Be prepared to provide all required documents instantly and keep them ever-ready. This will help in speeding up the loan processing and show your commitment to the loan application.
How to avail of an instant personal loan?
It all depends on the application you are using. In my personal experience, I came across the Bajaj Finserv application as the personal loan interest rate here is quite good, which one of my colleagues told me about. Here is a step-by-step guide:
- Download the app from the Google Play store or Apple App Store.
- Sign in or log in using your mobile number and email address.
- Go to the home page and click on loans.
- Choose Personal Loans once there.
- Fill in the personal details and the professional details required.
- Tap on Apply now.