When you urgently need some higher amounts of funds to cover your multiple needs in life, a personal loan can easily save the day. A personal loan can let you borrow as high as up to Rs.25 lakh quickly as it’s an unsecured loan. You can get the loan approval in 5 minutes and money in your bank account within 24 hours.
Many people apply for a personal loan daily in India to get some assistance financially. The facility of applying for a loan via online loan app is also available these days. You can apply for an instant loan, pay EMI, and do more via a loan app.
However, not all are able to get the loan approval as they lack some aspects that lenders look while approving the loan application. Hence, if you are willing to apply for a personal loan and want to get approval, then you need to consider some factors. Read on to know about them.
Elements that may affect instant loan approval
- Your CIBIL score: Your CIBIL score is the mirror of your future repayment behaviour which is based on the pattern of your earlier loans. It lets your banks to know if you will be regular with your loan payments or not. The longer the delay, the lower your score is likely to be. A credit score above 750 is considered healthy. It means that you will be counted as a safe loan applicant to be approved of a loan. Hence, the best thing to improve your Credit Score will be paying your existing loan debts and credit card bills on time.
- Your age: The younger you are, the better is your chance to secure personal loan approval. Why? It is simply because you have more working years left to repay the loan and lenders don’t see any risk of defaults. On the other hand, if you are in your 50s or 60s, then you may get an approval for a lower than desired money. It is because the default risk is more for such applicants as their number of working years is less.
- Your employment stability: Your employment history and how consistent you have been in your work may also approve or reject instant loan application. Anyone who has been stable at his/her work with a history of at least 1-3 years can get the loan approval easily. On the other hand, employees switching jobs often for monetary perks won’t get approval. It is because the job stability of such candidates is not enough to guarantee EMI payment without risks. If you are stable at your work, it will give lenders the confidence that you will have no issues in repaying the loan.
- Opting for a shorter tenor may help you: If you choose a small repayment tenor, you will have a better chance of securing loan approval without issues. Many reputed banks and lenders offer the facility of loan tenor ranging 1-5 years. If you can opt for a short tenor, then it is a win-win situation for both. You will be able to repay the loan faster and the lender will find no risk of defaults.
Some of the elements that can affect your personal loan approval are now discussed. You can check your financial stability and other aspects and accordingly apply for an instant loan via an online loan app of your preferred lender.
Bajaj Finserv App offers pre-approved deals on personal loans, home loans, business loans, credit cards, EMI finance, and more. It offers its own online app, which simplifies the overall loan processes to make it less time consuming for potential borrowers, thereby making for one of the best loan apps in India. You can explore your pre-approved loan offers today after submitting your basic inputs such as your name and mobile number.