Financing has never been simpler. Today, you can get a loan credited to your account at the click of a few buttons. The documentation has become simpler, the processing faster, and eligibility is much less complicated. Today, a personal loan is readily accessible via instant personal loan apps against a few simple eligibility requirements only. These advances come with attractive features that make them very popular among borrowers. Especially when seeking quick financing for meeting immediate expenditures, personal loans are the best.
However, the unsecured nature of personal loans also subjects the financier to high-risk lending, which leads them to assess the borrower profile for multiple aspects. Keeping yourself informed of these aspects and working on them in advance can help quicken your loan processing, get better interest rates, and improve your loan eligibility amount. Let us go through some of the ways to do so.
Use an EMI Calculator to Assess Your Affordability
The first thing that any lender checks in your profile are if you can afford to pay off a loan. Thus, they will first access your income and your income to debt ratio. Thus, when you apply for a loan, you can start by checking your personal loan affordability and see if the loan amount you seek to avail comes with an EMI that fits your budget.
One great way to do so is to use a personal loan EMI calculator. You can find this calculator easily on your lender’s website for free. If you are borrowing from an instant personal loan app, you can get the calculator on this platform as well. Simply enter your loan amount, a suitable tenure, and the applicable rate to check your EMIs payable, total interest accruing, and the total loan liability payable.
Borrow Within Your Eligible Loan Limit
It is also not prudent to exhaust your total loan affordability by availing as much of the loan amount as you are eligible for. It is a red flag for the lender.
You may thus ideally borrow an amount that is lower than your maximum loan eligibility. Use a personal loan eligibility calculator to check how much you can avail of and choose a borrowing amount accordingly.
Apply with a High Credit Score
Your credit score holds a significant weight when borrowing a personal loan. This score reflects your overall creditworthiness over the years. Lenders usually run a credit score check for the concerned borrower to assess their financial discipline and repayment habits. It would thus be great if you checked your credit score and worked on its related aspects like timely repayment, maintaining a balanced credit mix, and not having too many open loan accounts.
Fast-track Your Loan Processing with All Documents in Place
Keeping all documents in place before applying for a loan is a smart idea. It will significantly reduce the total time taken for your personal loan approval. All necessary documents in place can prompt quick verification, and thus bring fast approval of both offline and online personal loans.
If you are applying for a loan on a reputed instant personal loan app, the documentation is usually reduced to minimal, involving just your PAN card and Aadhaar card, which is great as it reduces the loan processing time as well.
Take Steps to Improve Your Repayment Capacity
You can work on ways that can help improve your repayment capacity for an adequate accommodation of your personal loan EMIs in the monthly income. Some initiatives that can help improve your repayment capacity include repaying your small loans before applying for a new one, submitting all income documents, and borrowing a loan amount lower than your maximum eligibility. If you have multiple sources of income, then you can add that detail to your loan application. In addition to that, you may consider adding a co-borrower to your application. This will help improve your loan eligibility and improve your credibility as a borrower.
Leverage Your Employment with a Reputed Organisation
In case you are a salaried individual working with a reputed organization, you can also utilise your employment status as leverage to get easy approval for your personal loan. Provide all necessary documents related to your employer to prove your financial stability and the lender will be more than happy to approve your loan application in an instant. In the case of self-employed borrowers as well, necessary documents supporting financial stability work just fine for fast approval.
Keeping all these aspects in mind and taking the right measures well within time can help receive quick approval for your personal loan. Note that applying through platforms like an instant personal loan app can quicken the entire loan approval procedure as these apps are dedicatedly designed to facilitate emergency financing. You can simply get one of the reputed apps installed on your smartphone, check your eligibility, and get a personal loan credited within minutes.