Instant loans are the best debt tools that can help you meet your immediate financial needs. They do not need collateral, have simple eligibility and need minimal documentation requirements. Thus, getting an instant loan approved seems easy. However, knowing a few tips and tricks can help you get your personal loan approved instantly.
With the advent of loan apps, availing an instant loan has become easier than ever. Today, you can get your loan application approved in minutes through a loan app. However, missing out on the eligibility rules, not submitting your papers correctly or making a few common mistakes can result in unnecessary delays.
Read on to discover these tips to get your personal loan approved instantly.
Easy Tips and Tricks to Get Instant Personal Loan Approved
An instant loan can be very helpful in times of emergencies or unforeseen costs. You can apply for an instant loan through a loan app in a few clicks, the entire process is digitalized, and the processing is fast and hassle-free. Thus, making these loans a very convenient option. However, before submitting your loan application you must check the eligibility condition and make sure you have the necessary documents ready.
Here are a few things you should keep in mind –
1. Your relationship with the lender
When you need an instant personal loan, always check with the lender with whom you have an existing relationship. They already have your details and know about your financial health. Also, they may offer you pre-approved loans, if you have an excellent track of repayment.
You may download a loan app, and keep using it every now and then to establish a good relationship with the lender. Repaying these small loan amounts before the due date will not incur any interest or fees and help you establish a rapport with the lender.
2. Maintain a good Credit Score
Your credit score is crucial when applying for an instant loan. It tells the lender whether you are a reliable borrower. A high credit score gives a lender confidence in your ability to make repayments. They are more likely to offer you a greater loan amount, a lower interest rate, and levy minimal fees on your loan application. Thus, check your credit score before applying for a loan.
In case your credit score is low, you must work towards improving your credit score with consistent efforts. Repaying your existing debts, clearing your credit card bills, consolidating your loans, and keeping your card utilization below 30 per cent can help improve your credit score.
3. Your Income Must Be Steady
Instant loans are unsecured loans and the lender offers you these loans solely based on your income and credit score. Thus, you must have a stable and steady source of income for the lender to believe in your repayment capability. Lenders will not offer a loan if your monthly income is insufficient or inconsistent.
In case you have any extra income, make sure to mention it in your loan application. This could be rental income, income from investments or income from freelancing. Make sure you have the papers to prove this extra income. You can also consider adding a co-application to your loan application to improve your chances of loan approval.
4. Make sure your debt-to-income ratio is low.
Lenders also check your debt-to-income ratio before approving your loan application. Your debt-to-income ratio helps the lender understand the amount of disposable income you have to accommodate the new loan EMI.
A high debt-to-income ratio indicates that paying debts will consume most of your income. In this situation, the lender can be hesitant to offer you an instant personal loan since they will believe that your ability to repay it is inadequate.
5. Submit the documents correctly
When submitting an instant loan application through a loan app, you must make sure that you have all the requested documents. Read the lender’s eligibility and documentation criteria carefully and submit the documents and photographs in the requested format only.
Also, check that there is no discrepancy in the information submitted in your loan application and in the documents you are submitting. Check the spelling, dates and address details correctly. A discrepancy in the details can result in delay or rejection.
Conclusion
Even though getting an instant loan is quite simple, knowing the right tips to apply for a loan can help you expedite the process. This can be extremely useful in case of emergencies when you cannot afford an unnecessary delay.
Once your loan is approved, the lender might take a few more hours to process the loan. When you apply through a loan app, the processing is completed within 24 to 48 hours. While traditional lenders take up to 7 working days to disburse your loan.
