A personal loan is one of the quickest and easiest methods to get money at the time of financial emergencies. With attractive loan offers and instant loan approvals, getting a loan has become much convenient nowadays.
On the contrary, rejected loan applications and high-interest rates have become the worst nightmares of personal loan applicants. Yes, some people get instant loan approval and even low-interest rates, while others get rejected or get trapped in a debt cycle due to high-interest rates.
Well, it’s not luck that varied people meet different fates while applying for a personal loan. Definitely, the people follow some special tactics to receive immediate loan approval and desirable interest rates.
So, if you are planning to apply for a personal loan soon then, follow the given tricks to avail personal loan in lowest interest rates instantly.
1. Do Adequate Research:
The biggest mistakes often happen due to lack of knowledge. In today’s time, you can’t even buy a small accessory correctly without having its knowledge. Yes, because the world is full frauds that are ready to take advantage of naïve people. The same thing goes with a personal loan.
You will either end up being rejected or being cheated if you apply for any loan without gathering adequate knowledge about it. So, perform online research to know about various banks that are providing the personal loan. Also, check the interest rates, eligibility criteria and other things like processing fees before selecting any loan offer. This will decrease the risk of loan rejection and fraud.
- Calculate your Credit Score:
Your credit score is the most important criterion to get personal loan approval. This score is generally based on your credit history with banks. It is used to check your loan repayment ability by the lender bank specifically in case of unsecured personal loans. So, knowing this score before the banks can be very helpful.
The credit score near 900 means that you have very bright chances of getting the best loan and the score around 300 implies that your loan approval chances are low. There are many websites that enable you to know your chances of loan approval against each loan offer on the basis of your credit score. So, with online guidance, you can apply for a loan offer where your chances are high to get instant approval.
- Improve your Credit Score:
What if your credit score is very low? What if you can’t get any desirable loan offer on the basis of your credit score? Yes, people also face such situations while applying for personal loan. But, you can improve your credit score; once you will know about it. You can check your credit history and identify the areas where you are lacking.
Remember that, there is no quick method of fixing your credit score and it takes time. So, if you are planning to apply for the loan after a few months then, start working on your credit score from today. Make timely credit card payments, decrease your debt and start paying your bills on time. In this way, you can improve your credit score to get a better loan.
- Don’t Apply for the Personal Loan too Frequently:
A personal loan is there to help you in the financial needs but, applying for too many loans in a short span of time leaves a bad impression on the lender. There are chances that you can’t take the burden of many EMIs in case of having more than one loan.
So, lenders often think twice before granting the loan to the borrowers who have taken another personal loan in the period of the last 6 months. Considering this, you should avoid applying for another loan if you have taken one recently. However, you can apply for a top up personal loan on your existing one in such cases.
- Have a Strong Savings Account:
Having a savings account with regular cash flow signifies that you manage your finances regularly and save money. It also depicts that you are getting regular money from various sources as your income.
Trusting on such people and giving loan to them is quite convenient for the banks. These things prove that you have the potential of paying the loan EMIs with punctuality. Having a savings account in the lender bank multiplies your chances of getting loan approval with good interest rates.
- Have a Stable Source of Income:
Having a stable job or your own business that gives regular profit is very necessary to get a personal loan. The more financial stability equals more chances of loan approval. It is a big risk on the bank’s part to provide an unsecured loan to anyone. So, they ensure that the borrower has a regular source of income through which he can pay the monthly EMIs conveniently.
Salaried persons must be employed in the same company for more than 6 months. If they are working in that organisation for 2 years or more then, they can get the best loan offers without much struggle. Non-salaried borrowers also have to show their capability through their tax return and other earning proof.
- Compare Various Options before Choosing:
Every bank has different loan terms and offers which mean that maybe for one bank you are a desirable borrower, while for the other you are not. Apart from it, many banks give exciting loan offers on special occasions. So, you should compare various loan offers and check with different banks that how much interest rate they can provide as per your profile.
You can check the common interest rate range online, and there are many websites that have shown a comparison of these rates to help you. Select the bank with the best range and contact them to know the exact interest rates for you. This will be decided on the basis of your profile. Go for the best offer after analysing properly.
So, follow these tips to get the best loan offer approved.