Getting a Personal Loan can be a convenient way to finance your small or large expenses. With the availability of easy-to-meet terms and conditions and quick disbursal time offered by banks, Personal Loans have become a preferred choice for many. Here, we will discuss some tips to help boost your chances of a Personal Loan with instant approval:
- Improving your CIBIL score
One of the most important factors that banks consider before approving your Personal Loan application is the CIBIL score. A high score indicates your creditworthiness and ability to repay the Loan on time. To improve your chances of Personal Loan preapproval, it is essential to work on improving your CIBIL score. To do this, pay off all your outstanding dues, including Credit Card bills, on time.
- Checking the list of required documents
Before applying for a Personal Loan online, ensure you have all the necessary documents ready. Banks require some documents to verify your identity, address, income, and employment details. Having all the required documents in order will expedite the Personal Loan approval process. You usually need your Aadhaar, PAN Card, passport, Voter’s ID, Employee ID Card, last three months’ salary slips, and Bank Account statements of the last three months.
Self-employed applicants may need to submit additional documents, such as income tax returns, previous years’ turnover, and business proof. By ensuring that you have all these documents readily available, you can streamline the Loan application process and improve your chances of Personal Loan preapproval.
- Lowering your monthly debts
Having a high percentage of your income dedicated to repaying existing debts can affect your chances of getting a Personal Loan approved. Banks may consider this a sign of financial strain and may charge you a higher Personal Loan interest rate to cover the added risk. To increase your chances of approval, aim to maintain a Fixed Obligation to Income Ratio (FOIR) of 40% to 50%.
FOIR is the percentage of your monthly income that goes towards repaying existing debts. This includes EMIs for Loans, Credit Card bills, and other outstanding liabilities.
- Fulfilling the eligibility criteria
Before choosing a bank, it is important to understand and meet its Personal Loan eligibility criteria thoroughly. Different banks may have varying requirements, so be sure to review them carefully. Here are the common eligibility criteria for Personal Loans:
- Age: You need to be between 18 and 60 years old.
- Citizenship: You should be an Indian citizen.
- Work experience: You should have a minimum of 12 months.
- Employment stability: You should be working with your current employer for at least six months.
- Minimum income: You should have a monthly salary of Rs. 15,000 or more.
Ensuring that you meet these basic criteria increases your chances of getting a Personal Loan with instant approval. Ensure you apply for the right Loan amount using the Personal Loan EMI calculator.
Conclusion
Remember, each bank may have different terms and conditions, so it is essential to carefully review them before deciding.
