Many times in our lives we are compelled to face situations where we are in urgent need of funds. Despite our best efforts and planning we are unable to come up with the requisite amount of money. This mostly happens in emergency situations such as weddings, functions, urgent home renovations, medical emergencies, etc.
The advantage we have in such cases is that there are NBFCs (Non Banking Financial Institutions) which offer Personal Loans of up to 25 lakh, requiring minimal documentation and tenor of up to 60 months and do not require any collateral. They get approved very quickly and once sanctioned, the amount gets deposited in the bank account in about 24 hours.
So how does one ensure that the personal loan is approved for sure and at the earliest? Given below are a few tips which if followed would surely help in achieving that –
1) Eligibility: Every loan has its own eligibility criteria. These include factors such as the age group, minimum salary requirements, and the number of years spent in an organization. All these should be checked before applying for the personal loan.
2) Credit Score: CIBIL score or the Credit Bureau score is extremely important which is compiled based on the credit history of an individual and affects the loan application. To be on the safer side, it is best to keep it at 750 or above to ensure the loan application gets through.
3) Maintaining the CIBIL Score: Maintaining a good CIBIL score is quite easy. All that needs to be done is to ensure timely payment of credit card dues, not having multiple lines of credit, and maintaining a mix of secured and unsecured loans.
4) Job Stability: This is considered to be a positive aspect by loan lenders, especially when applying for collateral-free loans. Employment for more than two years greatly increases the chances of the personal loan application getting approved.
5) Documentation: The required documents are minimal for a personal loan such as KYC, proof of income and residence among others and are collected from the doorstep or uploaded online. However, if these are not available then the application may be quashed.
6) Realistic Loan Amount: Opt for a loan amount which is not just realistic but only as much as you need. If you opt for a loan amount which is very high, chances are you may not be able to pay it in the future and default or the loan application may not go through.
Watch this video to know the five important document required while applying for a Personal Loan.