Personal loans are popular as they are versatile and easy to procure. However, did you know that following certain tips for applying for a personal loan will make your experience a lot smoother?
Here are some tried and tested personal loan tips and tricks to help get your personal loan easily and effectively.
Find out if you really need the personal loan
Is the loan needed for valid reasons or just for a casual purpose?
While there is nothing wrong in availing a loan for casual reasons that are not emergencies, it is important to understand that every loan is a financial commitment from your end till the end of the loan term and delayed repayment will impact your creditworthiness.
Have a look at your existing EMIs
Before availing a personal loan, take a look at your existing EMIs, rent, and other bills. Calculate what percentage of your income goes in fulfilling these commitments.
If you are already spending over 30-40% of your income on existing commitments, then you have a lesser chance of getting loan approval. Additionally, it will be harder for you to repay your loans as well.
Carry out a Credit Score Check
Your credit score is an important indicator of your repayment ability and determines your eligibility for loans. You can check your credit score for free or for a nominal charge from credit score providers such as CIBIL, Experian, etc.
Banks and NBFCs look for a minimum credit score of 750 or higher to approve personal loans. If you have a low credit score, it is good to wait until your credit score improves before applying for a personal loan.
Note: If your credit score is on the lower side, do not worry. As long as your CIBIL score is above 600 or Experian score is above 650, you can get a personal loan from Money View.
Compare various loan offers
There are multiple personal loan providers in the market such as online fintech lenders, banks, NBFCs, etc. Each has their own eligibility criteria, interest rates, time frame for disbursal, and other terms and conditions.
While certain lenders provide loans at a lower rate of interest, their eligibility criteria may be strict. Others may have more relaxed eligibility conditions but may not disburse the amount that you need. Therefore, check for a few different offers before applying and choose what works for your financial situation.
Check for 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 and it is important to submit 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 ones 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 a loan with different lenders to increase your chances of approval. But, you may be surprised to learn that it causes more harm than good as it can have an impact on your credit score.
While you can check for details online and compare, do not wait to do so after applying for a loan.
Make sure all the information provided is correct
Lastly, make sure that all the information filled in your application is true and 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.
These personal tips and tricks are just some of the most popular ones to help you have a smooth and successful personal loan application.
While banks are the traditional source for personal loans, today there are a number of other lenders in the market.
One of the most popular loan providers in the market today is Money View. Offering affordable loans with flexible repayment options, these personal loans are versatile and are disbursed within 24 hours of loan application approval.
Here are some tips to help you get a Money View loan easily whenever you apply:
The Money View eligibility criteria is very simple, transparent and easy to understand. 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
Minimum CIBIL score of 600 or Experian score of 650
Should be aged between 21 years and 57 years
Our documentation requirements are equally simple. We just require approved documents for -
Lenders provide loans to those who are responsible with their credit. Some of the factors that they look for are -
If applicant has paid all earlier EMIs on time
If all existing and earlier loan accounts are in green (No settled or written off loans)
If applicant has experience in managing unsecured loans (loans like personal loans, credit cards, etc)
In case your credit score is on the lower side, do not worry as you can increase the same. Check out our blog to find out more about this.
Personal loans are extremely popular as they are easy to avail and can be used for a variety of purposes. These loans require minimal documentation and are also affordable.
Using personal loan tips and tricks to help with your application is recommended as it can make your application and approval process a lot smoother.