Personal loans go a long way in providing people with financial ease and money at hand whenever needed. Since you are not answerable to the lender on how you will use the loan amount, you can spend it as you require. It could be for a luxury vacation, home renovation, buying an expensive gadget, or jewelry shopping for your wedding.
As per RBI, the personal loan market in India is growing. The credit outstanding on personal loans grew by 12.1% between September 2020 and September 2021. If you are planning to fill out a personal loan application form, this article is for you.
To err is human! However, you would not like to commit mistakes while filling out your personal loan application that may lead to its rejection. Therefore, it is necessary to keep a few things in mind to avoid rejection of your loan application.
Follow the below-mentioned steps to get approval on your personal loan application when applying for low-interest personal loans.
6 Important Steps to Get Approval on a Personal Loan Application
Step 1: Decide how much loan you need
The biggest mistake one can commit while taking a personal loan is to take more than what is required. The higher the loan amount, the higher the payoff will be. Therefore it is crucial to first analyze your monetary requirement and apply accordingly. While this may seem easy, it can be confusing to accurately decide the loan amount you want. The loan amount should be enough to cover the financial need so that you do not have to struggle with last-minute financial arrangements in case of a shortage. However, it should not be beyond your repaying capacity. A delay or failure in paying the loan EMI can put a dent in the borrower’s credit score.
Step 2: Check your credit score
The basic eligibility for approval of a personal loan application is the credit score and credit history of the loan applicant. An applicant with a poor credit history and a low credit score has a higher chance of rejection on his loan application. Even if the application does not get rejected, the lender will charge a higher interest rate from such a borrower. Therefore, before applying for a personal loan, you should check your credit score. You can check your credit score online using the various apps available.
Step 3: Find out the overall charges on the loan
Lenders often levy hidden charges on a personal loan that come as a surprise to the borrower. It adds to the cost of the loan and may become unmanageable for the borrower. Always check with the lender for all the charges involved in getting a personal loan. Fullerton India offers collateral-free low-interest personal loans of up to Rs. 25 lakhs at an interest rate of as low as 11.99% per annum for no hidden charges.
Step 4: Read the application form carefully
You may commit mistakes when filling out the loan application form. Always check every point and detail carefully and read the form completely before submitting it. An unnecessary hurry in filling out the form can lead to overlooking errors and may result in the rejection of your loan application.
Step 5: Look for pre-approved offers
Several times, the lender may have pre-approved personal loan offers for the customers. Contact the lender and ask for the availability of pre-approved offers before applying for a personal loan. It will save you time and effort and increase your chances of getting the loan.
Step 6: Select the lender carefully
Look for a lender with an easy loan application process and preferably has an online platform for the customers. Lenders with easy documentation and processing systems can give a hassle-free and pleasant experience to their customers. Leading lenders like Fullerton India offer an instant online loan application process customized as per the borrower’s need.
The Final Word
A borrower who is prepared before applying for a personal loan will have a smooth loan application process and higher chances of loan approval. Ensure all your required documents are ready and compare the offers from different lenders before applying for a personal loan. Fullerton India offers quick disbursal and 100% online and paperless loan approval to its customers.
Pankaj Tripathi is a content marketer with over 6 years of experience. With experience in the industries of B2B SAAS, e-commerce, and the hospitality sector, Pankaj brings a wealth of knowledge to his writing. In his initial role, he supported over 100 writers in creating content for diverse fields such as finance, medicine, insurance, and media and publications.