5 things to ensure for your Personal Loan Application to be approved

Personal loans are instrument of the financial needs during the times of urgent needs. The personal loans are one of the easiest and thus are considered as one of the most effective traps for the people, who take it without considering all other aspects. In fact, personal loans are the quick and easy answers to your financial troubles. When you apply for the personal loans upon deeply analyzing every aspect of it, it proves to be as a boon for you during the times of needs, especially during those times, when your near and dear ones, have raised their arms in helping you to get out of the financial crunch.

All you need is to apply for the personal loans and in most of the situation; you are approved for the personal loans. There are several players in the market, which are offering personal loans to the people and all they need is the applicant for the personal loans. But, still there are some conditions when the banks are being seen as hesitant in approving the personal loans of an individual. The reasons vary depending on the bad credit report of an individual or the issues regarding the stability over the income and repayment of the loan amount. Thus, the credibility plays a pivotal role in the entire process of getting personal loans getting approved. Here are the 5 ways, which will help you in the process of the improvement of the personal loan application.

1. Make sure you have a good credit history

Credit history is the one, which plays a very important role in getting the loan application approved. Credit history plays an important part and this is the first aspect, which a bank considers, when someone applies for the loans of any kind.

In case, you are having a good credit history, you will get an approval for the personal loans in a quick manner. While, a bad credit record most often results in the declination of the loan application. Maintaining a good credit record over the years by the process of paying all dues on time, paying all your bills on time, which are associated with the credit cards is one of the ways for getting credibility in an eye of the banks. Spending less than the credit limit and keeping older accounts active along with keeping yourself aloof from several external factors, which results in the negative impact on the credit history are some of the ways to improve your credit history.

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2. Borrow for your needs, not wants

Borrowing can be good as borrowing establishes a credit history. But borrowing and not paying on time, results in the negative impact on the credit record. In fact, banks do prefer people, who have borrowed only for their needs in history to judge their repayment capability. Anyone having a credit history is preferred, if the credit record is good enough. It is advised to borrow for your needs and not your wants. A person who can handle several debts is the one who borrow for his needs and repays it on time. He has greater trust in the eyes of the banks.

3. Calculate the exact loan amount you need

Are you really thinking of the loan amount, beyond your limits? Applying for the loan, which extends beyond your repayment capability often results in the rejection of the loan application. Thus, get to the ground reality and look for the loan amount, which in reality you can pay off.

In various cases, it is seen that the banks often calculate your monthly paying capability based on the monthly income of yours and that amount of EMI is around 40% of the total income of yours per month.

There is a term referred to as Debt to income ratio and this Debt to income ratio should never go beyond 40%. Banks prefer lower Debt to income ratio as they assess your income and your priorities of life. Generally more than half of the income is being kept as essential for the maintenance of the lifestyle. Always remember that the banks don’t approve the loans, which you in fact can’t afford!

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4. Keep Income proof ready

The banks always look for the safer way to recover their loan amount and in the process, the more transparent you play with them, the more trust and better deal can be snatched with them, which in a way proves beneficial to you.

If you are employed, make sure you show your pay slips to the banks in order to build a greater trust in their over the repayment capability. For self employed individuals, banks may ask for the documents, thus proving that you are capable enough to pay off your dues. The documents, in case of the self employed, which a bank can ask for are Income tax returns, Financial statements of years, any other license or documents in support of the self employment, thus proving your capability over the repayment of loans.

5. Do not rush for the deal

Even as the personal loans are the quickest loan to be sanctioned in our country, it may take some time. Thus, expect some delay over the loan process and be prepared for such a scenario. Always, keep your gates open and get ready for the bad. Expect the process to take time and be ready to take another route for the financial needs in case, the loan application gets rejected.

Don’t remain dependent on the personal loans and never make it a habit to cover your expenses with the personal loans. Only, consider this an option, when it’s needed at high time and consider it as a liability. Try to minimize your useless and unwanted expenses of life. The sanctioning of personal loans may take some time and always be ready for the backup options available with you.

The time required for personal loan procedure from application to approval can be fro 2 hours to several days. Apply at www.fastpersonalloans.in for your personal query related to personal loan.