Instant Approval for Personal Loans: Tips to Get Your Funds Fast

With the advent of digitalisation, obtaining instant approval for a Personal Loan has become simpler than ever. Now, loans can be approved within minutes, as long as you have the right documents and fulfil basic eligibility criteria. However, there are a few extra measures you can take to increase your chances and get faster approvals. Read this blog to explore top tips for securing your funds quickly.

Tips to Get Your Funds Fast

Here are some tips to help you get quick Personal Loan approval.

1. Maintain a Good Credit Score

Your credit score plays a crucial role in how swiftly your Personal Loan gets approved. Lenders in India, including non-banking financial companies (NBFCs), place significant importance on your credit score in gauging your creditworthiness. CIBIL score for personal loan of 750 or higher is considered favorable and greatly increases your chances of quick approval. Lenders see this as a sign of good creditworthiness, making it easier to secure a loan.

Tips To Improve Or Maintain Your Credit Score-

• Ensure timely payment of EMIs and credit card bills to avoid penalties and maintain a positive credit history.
• Keep your credit utilisation ratio under 40% of your credit limit to improve your credit score.
• Refrain from applying for multiple loans or credit cards within a short span, as this may indicate financial instability and negatively impact your credit score.

2. Ensure a Stable Income and Employment

Lenders favour applicants with a stable income and steady employment. In India, most top lenders require a minimum monthly income of Rs 15,000 for Personal Loan applications, with proof provided through documents like Form 16 or salary slips. Self-employed individuals should provide Income Tax (IT) returns from recent years to demonstrate income stability. Maintaining clean and well-organised financial records can expedite the loan approval process.

3. Check and Meet Eligibility Criteria

Each lender has specific eligibility criteria, and it’s crucial to review them before applying. Failure to meet these requirements may lead to automatic rejection, which could slow down your loan process.

Common Eligibility Criteria in India-

– Age: Between 21 to 58 years

– Employment: Stable job or consistent self-employment

– Work experience: Minimum of 1-2 years

– Income: At least Rs 15,000 per month

By understanding and meeting these criteria, you can avoid unnecessary delays in the loan approval process.

4. Keep Your Documents Ready

Having your documents in order can greatly expedite Personal Loan approval. Many online lenders in India have streamlined their processes, using KYC (Know Your Customer) verification to speed things up. Ensuring your KYC documents are updated and accurate will help prevent delays in your application. Additionally, keeping your proof of income readily available for upload during the online application process can further facilitate a quicker approval.

5. Choose the Right Loan Amount and Tenure

Choosing the right loan amount and tenure that aligns with your financial capacity is essential for quick approval. If the loan amount you request is too high compared to your debt-to-income ratio, lenders may hesitate to approve it. Keeping your loan amount within a range that you can comfortably repay increases the chances of swift approval and hassle-free disbursement.

6. Be Honest in Your Application

Providing accurate and complete information in your loan application is crucial for quick approval. Any discrepancies or false information can lead to a rejection or delays in processing as lenders cross-check the details you provide. Ensure your personal details, employment history, income information, and other key data are accurate and up-to-date. It will help speed up the verification process, allowing lenders to approve your loan faster.

7. Compare Lenders and Loan Options

With many lenders in India offering instant approval for Personal Loans, it’s wise to compare different options before applying. Each lender may offer different interest rates, processing times, and loan terms, so shopping around can help you find the best deal for your needs.

Conclusion

Getting instant approval for a Personal Loan in India is possible with the right preparation. Maintaining a good credit score, having stable employment, and keeping all documents ready can speed up the approval process. Additionally, it’s important to choose the right loan amount and be honest in your application to avoid delays or rejection. Remember to compare lenders and their offerings before making a final decision.