Thanks to quick approval and disbursal, instant personal loans have become a desired way to meet urgent financing needs. However, a few key considerations must be noted before applying to ensure your loan application gets approved without hassles. Read on to get a proper guide on instant loan applications to help you make an informed decision.
Understanding Instant Loans
Instant loans are collateral-free, unsecured loans offered by banks, NBFCs and fintech firms. You can apply online, receive near-instant approval based on eligibility, and get funds credited within a few hours to days. Ticket sizes usually range from Rs 20,000 to Rs 2 lakhs, with tenure options between 3 months to 3 years.
Critical Parameters for Loan Eligibility
Assess these aspects thoroughly before applying for an instant loan bank:
1. Credit Score and History
A 750+ credit score and consistent, timely repayments of existing loans/dues help establish creditworthiness. Banks will assess your CIBIL report closely.
2. Income Stability
A steady income flow for the last two years, through salary or business, is necessary. Many lenders have set minimum income thresholds.
3. Limited Existing Loans
Lower ongoing EMIs allow you to service additional debt. Too many active loans lead to rejection.
4. Employment History
Total work experience and stint at current job prove stability. Frequent job changes can negatively impact.
5. Age Limit
Minimum age is usually 21 or 23 years. Maximum age ranges from 58 to 65, depending on the lender.
Optimal Application Process
To boost instant loan approval chances, follow these steps:
1. Check Eligibility Thoroughly: Assess the parameters mentioned above.
2. Compare Interest Rates: Research rates across lending platforms. Pick the most competitive one.
3. Provide Accurate Information: Share correct personal and employment details.
4. Submit Proper Documents: Upload clear digital copies of KYC papers, proof of income, etc.
5. Limit New Credit Applications: Too many simultaneous impact the credit score.
By following these guidelines, you can ensure your instant loan application gets approved without last-minute surprises. Do your homework before applying.
Conclusion
Instant bank loans provide a convenient way to meet urgent financial needs. However, securing approval requires diligent preparation. Before applying, assess your eligibility using key parameters like credit score, income levels, employment stability, existing loans, and age. Compare interest rates on lending platforms and provide accurate information.
Limit fresh credit applications that can impact your creditworthiness. Follow these guidelines for the optimal application process to give your instant loan the best shot at approval. Do your due carefulness and put your best foot forward, from collecting documents to furnishing details. This will help you access funds quickly, minus last-minute surprises or rejections.
