A personal loan offers ample, cost-effective financing that can be paid over a comfortable tenor. Moreover, you can use it for any purpose you desire, be it to host a destination wedding, renovate a home or address a medical emergency. Further, you side-step the need to identify and pledge an asset as the loan is unsecured. However, because of the lack of collateral, lenders pay close attention to other aspects of your profile. In this scenario, to secure quick personal loan approval, it’s best that you work on certain factors. Take a look at 3 measures you can take to ensure that there are no delays and that you get speedy approval.
Ensure an excellent credit score
In the absence of collateral, your credit score is one of the most important indicators of your ability to repay the loan. Therefore, having the ideal score is a key to securing quick personal loan approval. Generally, with a credit score of around 750, your application should get the green signal without hassles. If you don’t know your credit score, the first thing you need to do is carry out a credit score check. Free CIBIL report and scores are available once a year from TransUnion CIBIL. If yours is under 750, improve it by paying credit card bills in full, paying EMIs on time, limiting your credit utilisation ratio and by fixing any errors in your credit report.
Showcase all sources of reliable income
When it comes to loan approval, an equally important parameter is your debt-to-income (DTI) ratio. Lenders evaluate this because you require regular, sufficient income to service EMIs. Since around 50% of your income probably goes towards fixed monthly expenses, the total debt you are paying each month should ideally not cross the 40%-mark. This is the ideal DTI ratio. Additionally, indicating secondary sources of income to your lender, be it from a freelance project or property rent, is beneficial as these bring down your DTI ratio and show that you have ample finance to make timely payments.
However, if after factoring in all sources of income, your DTI ratio is still high, consider reducing your EMIs. Use a loan calculator to find a tenor that will help bring down your EMI and thus, lower your DTI ratio.
Consider applying with a co-applicant
In the event that you need a quick personal loan and do not have time enough to boost your credit score or reduce your DTI ratio, look for external help. A creditworthy co-applicant will greatly help your cause as your loan application now has enhanced financial credentials backing it. In terms of income too, your application rests on the earnings of two individuals and so, has less reasons to be flagged.
Once you build a good foundation through a high credit score and an acceptable DTI ratio, apply with a lender who offers financing on simple terms, quickly. For instance, with a credit score of 750 you can get a Bajaj Finserv Personal Loan of up to Rs.25 lakh at a favourable rate of interest. The eligibility criteria are basic and you secure quick personal loan approval in just 5 minutes, with disbursal within 24 hours. Not only can you repay the amount over a tenor of up to 60 months, you can also use the unique flexi loan facility. Here you can borrow on the basis of your requirements and pay as per your usage.
A simple way of getting a quick personal loan with Bajaj Finserv is to check your pre-approved offer. On entering basic details, you can expedite access to funds.