We always want to cherish our dreams, but life challenges us. We often require financial assistance to fund our small or large expenses. Be it a vacation home renovation or debt consolidation, we find personal loans a feasible option at lower interest rates.
When stuck in certain situations like hospitalization, urgent fee payments, or home repairs, we look for fast approval of personal loans. We set up the budget by comparing the personal loan interest rates and using a personal loan EMI calculator. But we lack the information on the fastest possible disbursal time. Guiding you on how to secure fast approval for our personal loan application, the article helps you know the eligibility parameters and tips for fast approval of the loan application
Understanding Personal Loan
A personal loan is an unsecured loan where financial assistance is provided based on income, creditworthiness, financial background, and so on. The borrower has to repay on received money in fixed instalments for specific interest rates and terms varying from months to several years. Personal loans can be used for home renovations, medical expenses, debt consolidation, education costs, events like trips, weddings, etc. The assumption of expenditure is easily possible through a personal loan EMI calculator. Additionally, we can compare different personal loan interest rates to choose the best option.
Eligibility Parameters For Fast Approval Of Personal Loan
Borrowers need certain standards to qualify to access the personal loan. Chances of getting fast approval increase with meeting the standards. General eligibility standards that qualify for a personal loan include:
Borrower‘s strong income and stable financial history can ensure that they can bear regular repayments.
The lender checks the borrower’s creditworthiness, which must be good, i.e., above 650. Lower personal loan interest rates are offered to borrowers with good credit scores.
Borrowers must be above 21 to get personal loans from banks or other financial firms.
Lenders prefer to check credit history beside credit score. It ensures borrowers have no past debts or a good history of past repayments.
The applicant for the personal loan must be a resident of the country where he/she is applying for a personal loan. Several lenders also offer personal loans for NRIs. The NRI personal loans have different schemes and eligibility criteria.
By comparing income and monthly debt payments, lenders check whether borrowers can pay additional funds.
Tips For Fast Approval Of Personal Loan
Here are some tips borrowers must consider before applying for a personal loan and fast application approval.
Apply For A Personal Loan Online
Online application is the fastest yet secure way to avail loan at a lower personal loan interest rate. You can apply online and submit all the documents. Remember to use a personal loan EMI calculator for efficient planning. The lender will verify and approve or reject your application based on your creditworthiness and financial background.
You will get a notification or message of the verification outcome online. The document verification takes around a week. Once accepted, disbursement of the loan amount takes another 1 to 2 days.
Maintain A Good Credit Score
Your credit score showcases your creditworthiness. A credit score above 700 is considered good, but above 750 provides advantages over personal loan interest rates, terms processing rates, etc. Creditworthiness is an important criterion for accessing funds quickly. If the lender finds your profile low risk based on your credit history, your application will be processed fast. The calculations performed using the personal loan EMI calculator will also be accurate as you will get the desired personal loan interest rate.
Check Credit Score Before Applying
Regardless of having a good credit score, you must check your score before applying for a personal loan. Managing multiple credit cards is often challenging, and you miss some payments or have paid delayed payments. These activities can have a bad impact on your credit score.
Furthermore, if there is some error or mistake in your score, you must correct it before applying for the loan else the personal loan gets rejected.
Maintaining a Strong Bank Balance
Lenders always check borrower’s monthly average balances. If they find it good, they consider you to have good repayment capacity. Instant personal loans, pre-qualified and pre-approved personal loans, are hassle-free in this digital era if you maintain a higher average bank balance. Fast approval of the application and quick funds disbursement occurs in such cases.
Keep Documentation Ready
The borrower must keep the following documents ready for fast approval of the personal loan.
Identity card: Adhaar card, passport, PAN card, etc.
Resident proof: Passport, voter ID, Adhaar card, electricity bill, house tax, and so on.
Income proof: Past 3 to 6 months salary slip, two years balance sheet with a profit-loss statement approved by chartered accountant, income tax return, etc.
Accuracy In Personal Information
For fast approval of a personal loan application, you must provide accurate income and personal details with complete transparency and false information. Accuracy of personal information makes the process seamless and quick acceptance chances of the personal loan.
Apply Within Your Means
If you want secure and fast processing of your personal loan application, always apply for what is convenient for you to repay. Application for a higher than affordable loan amount can result in directly rejecting your application.
Include A Cosigner
If your credit score is not good, you can add a co-signer who has a good credit score, which increases your chances of fast approval of the application
The fast approval of your personal loan application needs sincere and careful preparation, smart strategies and meeting the eligibility criteria. When the borrower understands the lender’s requirements, submits accurate documents, and has a strong financial background, it increases the ability to access funds swiftly in less time. Remember to compare wide personal loan interest rates and choose wisely. Use a personal loan EMI calculator to finalize the decision with respect to EMI and tenure.
Q1. Can I get fast personal loan approval with bad credit scores?
A lender can quickly approve your personal loan in this condition but at a higher personal loan interest rate.
Q2. Can the borrower’s purpose of a personal loan affect fast approval?
The purpose of a loan does not impact application processing speed, but certain lenders have specialized application processes with certain types of loans.
Q3. How can borrowers track their personal loan applications?
Lenders offer online portals where you can track your application’s status.