18-Nov-2017 written by : FSI-Team
A personal loan can help you manage your small debts; help you manage a marriage or any other sudden circumstances. This type of loan falls in the category of unsecured loan, as one does not have to keep collateral security to get the loan sanctioned. Because of no collateral in place you will need to pay a higher interest rate as compared to other loans that are available in the market.
When you apply for a personal loan, it's really hard to determine if your loan will be approved or not. It depends on a lot of factors, which influences your chances of the loan application getting approved.
Applying for a personal loan is an easy task and if you are in the correct category of the checklist used by lenders, the whole process may take less than 15 minutes. What many people do not understand is that, what kind of personal loan are they looking for and how are they going to repay it. There are a lot of personal loan options available in the market with different lenders. One should also understand the terms associated with the loan, so that they don’t face any problems in future.
Before you go ahead with the loan procedures, do create a checklist of things, which are associated with a loan process. Make sure you have a proper idea on how things will work once you get into the process and try not to get duped by the lender or any banking relationship managers. When in the process, it is important to understand the timeline associated to the process. If the time taken by the lender while processing the loan is more than the average time committed to you, you have the right to ask for a proper explanation for the same.
There are three tips, which can boost your chances of getting the loan approved,
If you have an idea of your credit score, you now that you will not qualify for the loan and want to just try your luck, do not apply! When you apply for a line of credit, the lenders report it to the bureau. Your cibil score takes a hit for that as well and lose on opportunity to apply for a loan when you are really in need. You cibil score determines if you qualify for a loan or not, you can check by applying for a free cibil score. Arm yourself with the credit score information and that will lead to a smooth loan process.
In the heat of moment if you need a particular amount of money, stick to it even if you qualify for a good amount. Many lenders set pre-approved loans available on your account. When you need money, stick to what you need. Many people take what is approved and later realize it was a mistake. Try understanding your repayment capacity and only take what you need, because life is uncertain and you wont know how things can change in no time.
If you are considering going for a loan, try getting it from a reputed bank or a non-banking finance company. This will help you get the loan processed in no time as they have different departments working simultaneously for the loan procedures. In this digital age, you can research online on who would be the best to provide a personal loan with less processing fees and foreclosure charges. HDFC Personal loan being the best option available in market will help you with loan approvals in no time.
Getting a loan approved these days is like winning a war, if you are not certain about your incomes, cibil scores.