Personal Loan Disbursal

Personal loan disbursal is release of funds or the loan amount by the lender in the customer’s bank account. The loan disbursal takes place after the lender approves and verifies the borrower’s loan application and submitted documents. The disbursal of Personal loan usually varies from 24 hours to a few days.

Things to do After Closing a Personal Loan

Once you pay off your personal loan, there are certain things to be followed:

The No Dues Certificate (NDC) :

The No Dues Certificate is issued by your lender after you pay off the debt. This document confirms that you have paid all your debts and there is no further repayment. It is important to have this document handy for all further application processes as it proves to your future lender that you have paid your previous loan and nothing is outstanding. So, you need to ask your lender to furnish the document to you once complete repayment is done.

Collection of Unused Cheques:

In case, there are some unused or post-dated cheques, it is better to collect it from your lender. This officially marks the completion of the loan process.

Check Your Credit Score after Closing the Loan:

It is advisable to check your credit score after the loan is closed. This is to ensure that there is no difference in the score. Also, since there is no further payment involved, the positive impact on loan can be a little less as compared to when repayments were to be done. Hence, you must keep a track of repayment history and credit score.

How to Avoid Rejection of Personal Loan Application?

To avail your Personal Loan, you must fulfill certain eligibility criteria that includes age, work experience, credit score and more. If you fulfill all these requirements along with providing required documents, the chances of getting the application rejected can be greatly avoided.

How to Improve Your Chances of Getting a Personal Loan?

Maintain a Good CIBIL Score

Your credit score reflects your ability to repay the loan and is a factor considered by every lender. CIBIL Score of 760 and above is a very good score to get a Personal Loan. You can improve your score by repaying your existing loans, bills, installments and credit card dues on time.

Limit Your Outstanding Debt

Borrow only when required, else avoid it. If you have an outstanding loan amount that is more than what you can pay, then your chances of getting personal loan decrease. Also, ensure to keep your debt to income ratio low.

Avoid Multiple Loan Application

Multiple Loan applications can indicate to the lender that you are not financially stable and are debt ridden. This will definitely lead to the rejection of your Personal Loan. This rejection will bring down your credit score further, making the process of application even more difficult.

Have a Steady Income

Afraid that your bad credit history will sabotage your chances of getting a loan? Reduce your odds of loan rejection by having a stable income. Any recent appraisals or additional income sources improve your chances.