5 Tips to Increase the Chances of Getting an Instant Loan
Instant loans are useful for meeting unexpected expenses. While it is easy to get an instant personal loan online, be sure that the bank will verify your creditworthy before approving your application. To ensure smooth and fast approval of your instant personal loan application, check the eligibility conditions.
Here are some ways of increasing the chances of getting your loan application approved:
Check Your Credit Score
The credit score of an applicant is the primary consideration while processing and reviewing an instant personal loan application. A low credit score is not viewed favourably and often leads to rejection of the loan application or gets an approval at high interest rates. You can improve your credit score by regular and timely payment of your bills and other dues. In case your credit score is incorrect, take steps to get it rectified so that your chances of getting a loan do not get affected.
Check the Eligibility Norms
Before applying for an instant personal loan online, do check the personal loan eligibility conditions of a lender. This will help you avoid any kind of disappointment later.
Keep Your Debt-to-Income Ratio Low
Another important factor that affects the lender’s decision to approve your loan application or not is your ability to repay the loan amount on time. Having a good income is not enough. Having a reasonable portion of income free for repayment of loans is important. Try to ensure that only a small percentage of your income (around 30% or less) is used to repay any existing loans and the rest is available for funding other expenses and savings.
Loan Amount Should be Reasonable
Seeking a loan for an unreasonably high amount is the perfect recipe for its rejection. Apply for only that much amount which you can comfortably repay. Lenders do consider your income levels and your ability to repay before they sanction an instant loan. You may find it difficult to repay high loan amounts, which in turn will affect your creditworthiness and reduce your chances of getting loans in the future too. You can use the personal loan eligibility calculator to find out how much loan you are eligible for.
Again, you do not necessarily have to apply for the full amount that you are eligible for. Instead, apply for only that much amount that is needed for funding your expenses.
Apply to Only one or Two Lenders
Multiple loan applications send out a signal that you are desperate for money and your creditworthiness is not good. Instead, apply for an instant personal loan online only to one or two lenders whose eligibility conditions you meet. This will ensure quick processing and faster disbursal of your loan amount.
So, before you apply for an instant loan, do check out your eligibility, take steps to improve your credit scores by repaying earlier loans and dues, compare the terms and conditions offered by various lenders and zero in on one or two lenders. These steps will help ensure that your personal loan application is not rejected.