Personal Loan Tips
Personal loans are very helpful as they can be used for any reason. Some of the common reasons for which personal loans are applied could be for meeting emergencies like medical expenses, paying school or college fees, home renovation or meeting expenses during festivals or wedding expenses.
As a personal loan can meet many expenses and comes without collateral, individuals should take care before applying for a loan to ensure that their loan is approved.
We bring top tips and tricks that can help you get a personal loan when you need it
- Find out if you really need the personal loan
The first step before applying to a personal loan is to ensure if you really need that personal loan. Is the loan needed for meeting some valid expenses or just for a casual reason? It is important to understand that every loan is a financial commitment from your end till the end of the loan term.
Going in for a loan for some casual purpose may add to your financial burden in future. So, make sure you have a valid reason to go in for a personal loan.
- Have a look at your existing EMIs
Before you go ahead and apply for a personal loan, have a look at your existing financial commitments in terms of existing EMIs, rent and mandatory bills. Calculate what percentage of your income goes in fulfilling these commitments. If you are spending more than 30-40% of your income already on existing commitments, then you have a lesser chance of getting loan approval.
The amount of income spent on these commitments is an important factor that lenders take into account before approving your loan application.
- Carry out a Credit Score Check
A credit score is an important indicator of your ability to pay the loan. Credit scores are assigned by the credit bureaus like CIBIL, Experian, etc. You can carry out your credit score check at many of the websites that offer credit score checks for free.
Banks and NBFCs look for a minimum credit score of 750 or higher to approve personal loans. But, you can apply for a personal loan with a minimum CIBIL score of 650 from Money View. If you have a low credit score, it is good to wait until your credit score improves before applying for a personal loan.
- Compare loans
There are many lenders for personal loans like online fintech lenders, banks, NBFCs, co-operative banks. Each one of them has its own eligibility criteria, interest rates, time frame for disbursal and other terms and conditions for a personal loan.
While banks may allow the loan at a lower rate of interest, their eligibility criteria may be strict and may take more time for disbursal. On the other hand, online fintech lenders have easy eligibility requirements with faster disbursal.
- Make sure you meet all the eligibility criteria
Depending on the lender you choose, make sure you meet the eligibility requirements for the loan. It may be about minimum income requirements, age, area of residence, credit score, etc.
You will end up with a rejected loan application when you don’t meet the eligibility criteria.
- Check if you have the right documentation
Availing a personal loan involves less documentation as compared to many other loans like home loans. Generally, to avail a personal loan, you require an identity proof, an address proof and a proof for income. But, it is important to submit the documents that are approved by the lender under each category to avoid loan rejection. It is also important to submit current documents if you are submitting documents like utility bills or bank statements.
- Do not apply for multiple loans at the same time
Many of you may think that it is good to apply for one loan with many different lenders to increase chances of approval. But, you may be surprised to learn that it causes more harm to your chances of loan approval.
So, choose a lender, go through all the tips presented here and then apply to a single lender.
- Make sure all information given is correct
Lastly, make sure that all the information that you fill in your application is true and is free from errors. Lenders carry out a verification process before sanctioning your application. If any of the information is found to be false, then your application will be rejected.
By following these tips, we are sure that you can increase your chances of taking out a personal loan easily.
Top 3 Tips to Ensure Your Application for Money View Personal Loan gets Approved
Money View is an online fintech personal loan lender, where you can avail of a totally digital instant personal loan without providing any collateral. In addition, you get the best interest rates and the loans are available even on low credit scores.
We bring you some tips to ensure that you are able to get a Money View loan easily whenever you apply:
1. Meet our eligibility requirements
The Money View eligibility criteria is very simple, transparent and easy to understand. The first tip to get approval on loans is to meet all the eligibility criteria. Our basic eligibility criteria are:
- Be salaried or self-employed
- Monthly in-hand income of ₹13,500* or more
- Income should be received in a bank
- Min Cibil score of 650 or Experian score of 750
- Should be aged between 21 years and 57 years
2. Ensure You Submit All Documents Asked During the Loan Application Process
Our documentation requirements are equally simple. We just require approved documents for
- Identity Proof
- Address Proof
- Income Proof
3. Pay Attention to Good Credit Practices
All lenders look to lend to people who are responsible with their credit. Some of the factors that look for to make sure that the applicant is credit worthy are
- Paid all earlier loan EMIs and other commitments on time.
- All existing and earlier loan accounts are in green (No settled or written off loans)
- Experience in managing unsecured loans (loans like personal loans, credit cards, etc)
- Have managed loans responsibly for quite some time.
For all your personal loan requirements download the Money View Loans app today or apply on our website.