Getting an instant loan has become quite common these days. Many people require quick funds for meeting short term financial needs like paying bills, medical emergencies, home or car repairs etc. Instant personal loans offer the convenience of getting money within hours of applying. However, applying for an instant loan requires following some important tips to get approval quickly. This article discusses some key tips to keep in mind while instant loan apply.
Check Your Eligibility
Checking your eligibility for a quick loan is the first and most important step to take. Depending on variables such the minimum income, and credit history, age, etc., various lenders have varied qualifying requirements. It is essential to review the qualifying requirements of the best rapid loan providers in India to estimate your likelihood of being approved. Typical qualifying requirements include:
- Minimum age of 21 years or above
- Minimum monthly income of Rs.15,000-25,000
- Citizen of a nation
- Salaried professionals or self-employed
- A track record of good credit without any defaults or payment delays
Checking eligibility upfront will save time instead of applying and getting rejected due to non-fulfillment of basic norms. You can use eligibility calculators provided on lender websites.
Gather Required Documents
Most lenders require basic KYC and income documents for instant loan application. Have the scanned copies of following documents ready:
- ID proof (Aadhaar, PAN, Voter ID)
- Address proof (Aadhaar, Passport, Ration card etc.)
- Last 3 months’ salary slips (for salaried)
- 6 months’ bank statements (for self-employed)
- ITR (Income Tax Returns) of last 1-2 years
Having documents uploaded with the application speeds up the approval process significantly. Ensure that documents are readable as well as clear.
Check Credit Report and Score
Before applying for a speedy personal loan, it’s essential to examine your credit history and credit score. Your credit report displays details of past loans, credit card payments, and other financial transactions Credit bureaus, maintain such reports based on data shared by banks and lenders. When you ask for the new loan, lenders examine your credit report to evaluate your creditworthiness. Based on information in the credit report, such as timely payments, loans that are still due, loan to value ratios, etc., a parameter known as a credit score is created. Typically, credit ratings fall between 300 to 900. A score above 750 denotes improved credit management and a lesser chance of default.
It is advisable to check your credit report from authorized credit bureau websites. This helps you identify any incorrect or outdated information. Mistakes in reports like wrong repayment details, loans not closed properly can negatively impact the credit score. Get in touch with respective lenders to update records and correct errors. Checking the credit report allows you to find ways to improve your score if required before loan application. Paying off outstanding loans, closing unused credit cards, making all bill payments on time regularly enhances the score over 6-12 months. A good credit score gives lenders confidence about your loan repayment capacity. This significantly increases chances of approval for the instant personal loan.
Compare Interest Rates
When applying for an instant personal loan, you must carefully compare the interest rates offered by different lenders. Interest is a significant cost for any loan and even a 1% difference can impact the total repayment amount substantially. Interest rates may vary depending on individual lender policies and risk assessment.
Factors like loan amount, tenure, credit score affect the rate offered. Lenders may charge lower interest for loans up to Rs. 5 lakh compared to higher amounts. Similarly, shorter tenures of 6-12 months have lower rates than longer periods. Your credit history also influences interest pricing – better scores qualify for lower rates.
It is a good idea to directly check interest rate slabs mentioned on lender websites or by calling their customer support. This gives you an idea of standard rates without sharing details. You can also use online tools that allow feeding loan details to fetch and compare rates from multiple lenders simultaneously.
Provide Accurate Details
When applying for an instant personal loan, it is crucial to fill all details in the online application form very carefully and accurately. Lenders rely on the information provided by you to process the application and make lending decisions. The application usually asks for personal details like name, date of birth, contact number, email, current address etc. It is important to mention these details exactly as per your valid KYC documents to avoid any mismatch errors.
Details around employment like organization name, designation, date of joining, total experience also require double checking from your salary slips or service records. Income figures like gross monthly/annual salary or net profit shown must match with submitted income proofs. Even small errors or inconsistencies in name spelling, contact details or income amounts can lead to delays in application processing or even rejections. Some lenders have a zero tolerance policy for wrong information.
Choose Suitable Loan Amount and Tenure
When applying for an instant personal loan, deciding the right loan amount and tenure is very important from a cost and repayment perspective. It is best to realistically assess your actual requirement and repayment ability. While bigger loan amounts may seem attractive, opting for a higher amount than needed will unnecessarily inflate the total interest cost payable over the tenure. Monthly EMIs too will be higher, adding financial strain.
Similarly, longer repayment periods extend EMIs but increase overall interest outgo substantially. Most instant personal loans offer flexible tenures between 6 months to 1 year. Sticking to shorter durations of 6-9 months ensures lower interest payout. It is advisable to do a simple EMI calculation for different loan-tenure combinations to understand the impact on monthly and total repayment. Match your requirement after deducting existing loan obligations from take-home salary or net income.
Following the above tips helps optimize instant loan without credit score. From eligibility to acceptance, focus on timely document submission, accurate details and quick response. This improves chances of getting instant loan approval and faster disbursal within 24 hours as promised. Plan loan amount and tenure wisely as per need. With discipline in repayments, instant personal loans can be a convenient option for meeting short term financial requirements.