Taking a loan back in the day was so hard, that people had to find a relative who works in a bank or knows someone who does, to get their loan approved. If you knew the branch manager in a public sector bank, people would visit you with gifts and would do anything to convince you to get their loan approved from the bank! Today there is so much access in the digital world that it takes a few minutes to get a loan approved, you can do it at the comfort of your home. The digital world sure has made our lives easy, but it has also created a lot of confusion in the mind of the average Indian customer, especially those people who are not used to dealing with banking websites on a regular basis.
The real question is what do banks look for? What is it that makes the bank secure about your financial status so that they can lend you a lump sum amount for a long time? We thought we should solve the puzzle for you, guess what! it is not all difficult! After reading today’s blog it’ll be a child’s play for you to get an instant approval next time you visit a bank or a website to get your loan sanctioned.
Most of the banks and financial institutions have a minimum age criterion that you must fulfill to get your personal loan approved. This is the most basic criteria and is mandatory so make sure you’re at least 21 years old! The age cap is usually between 21 to 60 years in most of the banks.
You must have read this in our previous blogs, it is a fact that maintaining a good credit score has always been a major factor to get loan approvals, maintaining a good credit score gives assurance to the bank that you have handled credit in the past and have the ability to pay back the loan on time. The credit score ranges from 350 to 900 so, if you have a score more than 700 then you have a fair chance of getting a loan approval quickly. If you want to check your credit score for free, click here.
Applying for a loan to several lenders may portray a bad picture about your credit worthiness. Lenders might get an idea that you are credit hungry and have to depend on multiple loans for funds and will eventually reject your application, moreover this will also result in a drop in your credit score. Banks use this data for scrutiny so it is best to find the most suitable lender according to your income and the interest rate. If you want to check out the best interest rates in the market, click here.
In order to get a loan approval, it is important that you a clean loan history. It is important that you pay-off your existing loan on time so that you do not face problem in the future. Also, you must not have any loan history in the past 6 months as banks will hesitate to accept your application as they will doubt your repaying abilities.
Last but not the least it is very important to choose the loan amount wisely, banks have their own methods of scrutinizing the income and expected savings of the borrower and if it doesn’t match your loan requirement then the banks will not accept your application so make sure you have a clean record before coming to any conclusions about the amount to be borrowed.
See! We told you it is not as difficult as you thought it will be! If you follow the above criterion then you are good to go. If you want us to do a blog on a topic of your choice, write to us and we might feature it next week and give you a shout out!
Till then… happy buying!
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