How to boost your chances of getting a Personal Loan?

Without the right efforts, you might not get approved for a personal loan. Here are some tips to ensure that you get approved

The coronavirus pandemic has demonstrated the importance of financial planning and saving for the future, whether it's re-establishing your business, paying for your childrens education, or getting yourself out of a financial bind. A personal loan, which does not need a collateral, could be beneficial in assisting you to achieve those objectives. However, at times, one may find it difficult to obtain a loan due to its unsecured nature. A personal loan is one of the most popular loan solutions for people who need money quickly. A request for a personal loan is examined based on various important factors. Therefore, it's a good idea to improve your chances of acquiring an easy personal loan with an online loan app. Here's how you can improve your odds of obtaining a personal loan.

How to get a personal loan?

Work on your credit score

A credit score is a three-digit figure that indicates how well an applicant has managed their credit. Lenders use it to assess the risk of defaulting and to learn about the applicant's financial discipline. A 750-point score or greater is good.

To begin with, determine your credit score, and if necessary, improve it by paying the existing EMIs and credit card payments on time. Also, aim to keep your credit utilisation ratio low. A good credit score improves your chances of getting a personal loan, and if you’re lucky, the lowest personal loan interest rates.

Maintain your employment record

To give you the best personal loan rates, creditors will want evidence of your ability to repay the debt. They might look for consistency in your salary history to see if you can sustain a financially stable future. They will prefer a candidate who has stayed in the same company for a long time and does not change jobs frequently.

Do not apply too many times

Filling out many loan applications on your banking app gives the impression that the borrower is desperate and paints a negative picture of their financial status. In addition, every loan application denial lowers your credit score, making it much more challenging to secure a loan in the future.

Choose a longer repayment term

Lenders assess your present monthly repayment responsibilities when analysing your loan application. If your monthly obligations total half of your net monthly income, including the EMI for the loan you're applying for, you'll have a better chance of getting approved. If your monthly instalments are a sizable sum, choose a longer term to lower your EMI.

Check your personal loan eligibility 

Before you apply for a loan, you can use a personal loan eligibility checker to see if you are most likely to avail it. This will allow you to conduct a soft search that will not leave a mark on your credit record, increasing your chances of being approved. You can apply online once you have discovered a suitable deal. After you have applied, the money may reflect in your account in a couple of days, or possibly the same day.

Use a personal loan EMI calculator

Using a personal loan EMI calculator ensures that you are taking on a loan that you can be sure of repaying. You have to input the amount you wish to take along with the tenure and the interest in the calculator. After you input these factors, you will be shown the monthly amount you need to repay the bank. You can thus determine if the amount is feasible for you, and if not, you can adjust the tenure or the amount to be availed accordingly. 

If you are thinking of taking a personal loan and are looking for the best bank to take one from, you’ve landed on the right website. IDFC FIRST Bank offers affordable interest rates and repayment tenures available in the market at present. Furthermore, our customer loyalty programs and our availability on our mobile banking apps can help ensure that you avoid being in any disadvantaged position. So, wait no longer, get your personal loan from IDFC FIRST Bank today!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.