A personal loan can be hugely advantageous in times of need or financial difficulty. Numerous lenders offer quick personal loan approvals with minimal paperwork and no collateral required. Additionally, with personal loan apps, getting a loan will be faster and more convenient.
However, many don’t know the secret to getting their loan application approved. Below are some of the best seven tips on getting instant loan approval.
- Use a Personal Loan App
With the click of a button, you can securely apply for a personal loan using a personal loan app and quickly receive confirmation from your lender. You will also receive updates concerning your loan application via email or text message. lendingplate provides pre-approved and pre-qualified loans based on one’s credit history. With all the accurate information, the loan’s approval occurs instantly. Take your time and explore the loan offers.
Ensure You Have a Good Credit Score
A good credit score is a positive reflection of loan repayment ability. A rating above 700 is desirable, but having an even higher one gives you the chance of receiving quick approval. When approving a personal loan, lenders’ most important factor is your income and credit repayment history. If you boast a healthy credit score, lenders view your profile as low risk, and there is less chance of missing loan repayments.
- Maintain a Good Bank Monthly Balance
If you demonstrate that your repayment capacity is solid, lenders will consider that when assessing whether to provide you with a loan. Banks determine this by measuring the Average Monthly Balance (AMB), which is determined by adding up every day’s closing balance for one month and dividing it by the number of days in said month.
Lenders are equipped to offer simple and trouble-free instant personal loans, pre-qualified personal loans, and pre-approved personal loans that require a high average balance in your savings account. With only mere clicks on your personal loan app, you can have the loan amount disbursed into your savings account!
- Apply Using Only One Personal Loan App
When hard-pressed for cash, many people often seek personal loans from various lenders in the hopes that they can get one quickly. By applying with multiple lenders, you might be inadvertently signaling your financial desperation, which could make it more difficult to secure a loan due to lowered trustworthiness score. Therefore, if you need urgent funds, you should be cautious before submitting your loan applications to different lenders. Not only can multiple loan applications result in several rejections, but the declined loans could negatively affect your credit score.
- Provide All the Required Documents
Before submitting your application for a personal loan, have all the necessary paperwork prepared. Nevertheless, you should confirm the mandatory documents by exploring the lender’s official website or by asking the bank representative directly. Securing these documents ahead will significantly expedite your approval process time!
- Provide the Correct Information
Submitting precise personal and financial data raises your chances of personal loan app approval and makes the whole journey seamless. For instance, if you have more than one source of income, it is ideal that you provide all related documents to the lender so they do not need to come back requesting further paperwork.
- Apply for the Amount You Can Manage to Pay
Begin your loan application process by accurately calculating your loan repayment capability. Otherwise, you may end up with an amount that is difficult to pay back, resulting in application rejection. Thus, before submitting the loan application form, consider all your fixed and variable expenses, including potential increases and existing dues. Doing this will help you determine your credit limit without falling into debt traps or damaging your credit score.
The debt-to-income ratio is calculated by dividing the total amount of your monthly EMIs and expenses by your monthly income. Generally speaking, having an EMI load of less than 30% of one’s salary is considered a healthy debt-to-income ratio. The higher this percentage gets, the more likely it will be that lenders may reject such applications since they may perceive the applicant to have taken on liabilities beyond their means. For example: if someone earns Rs 50,000 per month but has existing obligations in the form of EMIs worth Rs 30,000, their respective DTI would come out at 60%. Since most institutions tend not to accept loans if the DTI exceeds 45%, a high debt-to-income ratio could trouble such applicants.
Applying for a loan and getting approved may seem challenging. But it shouldn’t be. If you take the time to research and consider the above tips, your application can easily sail through. We understand that this type of financing is most often an urgent need. However, you need to be patient to ensure that you are signing up for the best possible lender. Among the available Indian lenders, lendingplate is the best suited for your needs. Reading all associated fees, such as processing charges, pre-payment penalties, or foreclosure costs, ahead of time will save you from any surprises.