How to Improve Your Chances of Getting Your Personal Loan Approved

If there’s one thing that the COVID-19 pandemic has taught us, it’s that making advance preparations for future needs is crucial. Be it taking care of your child’s education, re-establishing your business, revamping your house, or bailing out of a financial emergency, we ought to be able to handle everything without much stress. A personal loan that gets you money without pledging any collateral is one of the best ways to meet such goals. IDFC personal loan reviews reveal how the bank has helped many people tackle different circumstances and took the financial burden off. A personal loan applicant is evaluated based on several parameters and it’s always wise to be prepared so that the approval is hassle-free. Here’s how you can improve your chances of getting your personal loan approved:   

 

Improve your credit score

Credit score is a three-digit number that indicates a person’s credit history. It is used by lenders as a crucial parameter to analyse the default risk and evaluate the person’s borrowing capacity. Ideally, your credit score must be 750 or higher. Find out what your present credit score is and improve it further by paying your credit card bills and EMIs on time. When your credit score is good, your chances of getting a personal loan approved automatically improves too. It also helps garner the best interest rates. 

Maintain a steady employment profile

Lenders always want to make sure that you’ll be able to pay back the debt on time. Therefore they want to be assured of the fact that you have a steady source of income and a financially sound future. Preference is given to those applicants who don’t frequently change their jobs. You must maintain a steady employment profile if you wish to appear as a good borrower. 

Add a co-applicant or guarantor

If your credit score is low or you have insufficient income, fret not. The solution here is to take a joint loan with a co-applicant having a good credit profile and stable income. This helps minimize risk and increases your chances of getting approval on your personal loan. Always have a co-applicant handy which will enable you to avail a loan of a higher value as well. 

Avoid multiple applications

Filling out multiple applications to different lenders makes you appear desperate and creates a negative image of your financial situation. If your loan applications decline, it also leads to a decline in your credit score. This further reduces your chances of getting a personal loan approved in the future. Check your personal loan eligibility before applying for one to reduce the chances of application rejection. 

Lastly, remember that searching and applying for a personal loan from reputed banks such as IDFC FIRST Bank may ease the application process and speed up approval.