You may require funds for a wedding, home improvement, higher education, vacation, medical emergency, or debt consolidation, among other things. If you are not financially prepared, the cost may deplete your savings or worse, severely affect your financial health. Personal loans come in handy in this situation. They not only provide a considerable sum of money, but they also come with instant approval and quick disbursals.
Instant personal loans have become a popular financial choice in India nowadays because they can be excellent providers of financing in times of need. When you apply for a personal loan, the last thing you want is for the lender to reject your application. To qualify for a quick personal loan, you must meet certain eligibility requirements. The good news is that there are certain steps you can take to improve your chances of getting a loan approved.
Don’t know where to begin? To increase your personal loan eligibility, follow these key steps before and during the loan application process.
Keep Your Debt-To-Ratio In Check
To lower your debt-to-income ratio, pay off your present debts and credit bills before applying for an instant personal loan. Your present debts and due bills may make you appear to be a credit-hungry borrower, making it difficult to obtain another loan.
Ideally, the total amount of EMIs you are paying should not exceed 30-40% of your monthly earnings. If it’s more than that, pay it off before applying for a new loan.
Lock-In A Steady Income Source
Another key financial factor in the loan approval procedure is your income. Lenders want to see that you’re earning enough money to repay the loan, and that your income comes from a consistent source, such as a steady job.
To demonstrate that you’re a responsible borrower with the money to repay what you owe, try to keep your employment situation the same in the months leading up to taking a personal loan.
Avoid Multiple Loan Applications
While it may seem favorable to apply to multiple financial institutions to boost your chances of receiving a personal loan, this strategy can backfire. To a potential lender, it merely communicates your desperate need for credit.
Multiple applications could indicate that you are having financial difficulties and are already in debt, lowering your chances of receiving a quick personal loan.
Choose A Reliable Lender
Different lenders cater to different kinds of borrowers. Choose a financial institution that is a good fit for your needs and provides a variety of features and advantages. Home Credit offers you an instant personal loan of up to ₹5 lakhs along with the following benefits and features:
- Personal Loan Up To ₹5 Lakhs: Home Credit offers a personal loan amount ranging from ₹10000 to ₹5 lakhs for existing customers to fund their expenses.
- Flexible Repayment Options: You can easily repay the loan amount in flexible EMI’s as per your convenience with a repayment tenure ranging from 9-51 months for existing home credit customers.
- Low EMI Amount: With Home Credit, you can avail yourself of a personal loan of up to ₹5 lakhs with easy EMI’s.
- No Collateral Required: You do not need to provide any collateral or any security to get a personal loan.
- Get Instant Loans with Just 2 Documents: To apply for an instant personal loan, you just need 2 documents – Your identity and residence proof.
- Simple Application Process: Applying for a personal loan with Home Credit is quick, easy, and seamless with minimal documentation and instant approvals.
- No Hidden Charges: At Home Credit, transparent and secure processes are at the core of what we do, so everything you pay is what you know!
Download the Home Credit Personal Loan App from Google Play Store to get started!
Keep Your Documents Ready
To make sure you get your loan application approved, it is imperative that you provide the required documents and information to the best you can. However, it is advisable to compare various options and choose a lender that offers minimum documentation to make your loan journey smoother. For instance, applying for a Home Credit personal loan requires just 2 documents:
- Proof of Identity: PAN Card (Mandatory)
- Address Proof: Aadhar Card/ Voter ID/Passport/ Driving License
Make sure to keep these documents handy when applying for an online personal loan with Home Credit.
Make Sure You Fulfill The Eligibility Criteria
Rather than applying to multiple lenders only to find out that you are not eligible for their loan, compare the eligibility requirements of several lenders and choose the one that meets your needs. For instance, Home Credit has the following eligibility conditions that are relatively easy to fulfill:
- Be an Indian citizen aged between 18 and 60 years.
- Have valid ID proof and current address proof.
- Be employed, self-employed, or a pensioner.
- Maintain an active bank account.
- Ensure a minimum 90-day interval between two Home Credit loan applications.
- Demonstrate a monthly household income exceeding ₹25,000. “Household” refers to an individual family unit comprising a husband, wife, and their unmarried children.
- Need to be an existing customer of Home Credit (should have availed Ujjwal EMI Card/ Consumer Durable Loans/ Personal Loan/ Flexible Personal Loan in the past).
As you can see, there are a variety of ways to improve your chances of getting a personal loan approved. If you want to apply for a loan soon, start working on these steps today to enhance your chances of receiving an instant personal loan in no time!
