Personal Loan: 6 Ways To Get It Approved

By Author: LoansJagat
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Personal loan is an unsecured loan which is usually taken by people for short term expenditure since they do not require any collateral to be mortgaged. The interest rates can range anywhere from 10.25% to 37% based on different banks’ services and fees.

Since the past year, the number of applicants for personal loan have increased. Massive unemployment caused by layoffs and winding up of various companies because of the global panic created as a result of the pandemic can be some correlative reasons behind the same.

Since the number of applicants for loan has increased, lenders such as banks and other financial institutions are becoming increasingly selective about whom they allot the loan. And getting a personal loan in Delhi approved is like a dream come true for many.

Following are some of the easy tips that have the potential of making your application outshine. These tips have been tried and tested in most of the banks offering personal loan in Delhi.

1. Meeting the Eligibility Criteria

Most ...
... of the banks across India require you to be at least 22 years old. However, some of them would accept you at even 18, given that the purpose and application are solid enough. Many banks are not convinced with retired individuals or those above the age of 60. If you’re employed, you might be required to show the documents regarding the same. If you’re self employed in a business, you would be required to show the proof of your turnover.

2. A Good Credit Score

A credit score is given to an individual based on your debt to income ratio and is calculated using your credit and loan payment records.

Debt to Income Ratio

It is basically a ratio which determines how much of your income you spend on paying your debt. If your EMIs are taking more than 30% of your income, then that’s a red flag for your potential lender. When you have so much of financial burden on you; they wouldn’t find you capable of paying.

This score spans from 350-900. If your score is above 700, then there’re greater chances of getting your personal loan instantly. However, there’s no need of feeling disheartened if your score is low. Take some time, pay your bills and other debt and check again after a few weeks or months.

While you submit your application, banks pay the most of their attention on your credit history. Make sure you have a good record of paying back.

If you’ve a huge debt, there’s still a way to manage it out. Debt Consolidation is a technique where all your separate debts are consolidated into a single debt which you can pay as per your convenience. Many banks and financial institutions provide this service.

They also offer attractive schemes such as reduced interest rates which you can take an advantage of.

3. Decide on the loan properly

Even though it is recommended that you ask for some extra amount than you actually need because of the possibility of some miscellaneous and unforeseen expenses; still, the amount needs not be hyperbolic. Otherwise, it would affect the likeliness of your getting that loan.

Choosing the right loan type is also important. A secured loan is a loan where the lender requires you to mortgage some property as a collateral, while an unsecured loan does not require this. Most of the personal loans are usually unsecured. Hence, your property is not at risk in most of the cases. However, if in some exceptional cases, it is; then, you are supposed to keep these points in your mind.

4. Don’t be too bothersome

Don’t Send in Multiple Applications. Keep in mind that the person at the receiving end is a professional and moreover, a human. Stubborn behaviour might get them irritated. Further, they might not take you seriously because of this behaviour. Avoid reapplying for a loan before six months of rejection. Similarly, do not apply with multiple lenders. Banks like the applicants feeding their egos. Be specific while applying for a loan. Applying to different banks would indeed dilute your chances of securing a personal loan in your name.

5. Demonstrate your repayment ability

Keep this in mind, don’t apply for a personal loan while you are stuck paying off another Loan. Repaying your previous debts before applying for a new personal loan is extremely necessary. Prepare a solid plan for repayment before applying. This would also settle your credit score.

6. Provide Correct Information

In order to increase the chances of your personal loan approval, you’re supposed to provide the correct information that is appropriate for the purpose. Avoid making errors in the loan application and revise the application once you are done preparing it. Provide stable information about your income and expenses as well as the proof of your residence.

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