Last Updated on March 8, 2023 by
Applying for any loan can seem complicate, However, you can take a few steps speed up the process.
This article shares six tips to help you get your loan application move quickly.
Proven Strategies for Quick Loan Approval
After checking the personal loan options available, you want to apply for the best. However, you should have eligibility requirements in place to speed up the process and get quick approvals.
Here are six proven tips to help you speed up the process.
Apply Online
Applying for a personal loan online is a fast and secure option. The lending institution will send a confirmation once you have submitted your application and supporting documents. After analysing your application and supporting documents, the lending institution will decide whether or not to approve your loan.
Online loan application status notifications may be sent to you through email or text messages. Depending on the loan, it takes a few minutes or a few hours to a few days to approve a loan when all paperwork is submitted physically or online. After approval, funds are released instantly.
Keep Good Credit
To improve your chances of getting approved for an online loan, it’s essential to maintain a good credit score. Your credit score is a key factor that lending institutions will consider when determining whether or not to approve your loan application.
An Experian credit score of 630 and above is considered eligible for Personal Loans by NBFCs like Clix Capital.
If your credit score is lower, you can do certain things to improve your credit score. Pay all your outstanding debts, decrease credit utilisation and check with the credit monitoring service for any errors on your report.
It’s also important to remember that NBFCs may have different considerations for a “good” credit score. So, checking with the lending institution before applying for a loan is always a good idea.
Apply to Just One Lending Institution at a time
One of the most important things you can do when applying for an online loan is to apply with just one lending institution at a time.
This is because loan providers perform a credit check on your credit profile every time you submit a loan application. When a lot of hard inquiries are initiated by different loan providers, it may sometimes negatively impact your credit score.
Prepare Documents
You should have your documentation in order before applying for an online loan. This will simplify the lending institution’s grant of your loan and speed up the procedure overall.
Your identification, income, financial records, and relevant tax returns should be in a folder. Make sure to get these things in order before you start the application.
After gathering the necessary information, go to your preferred finance company’s Personal Loan section on the website and fill out the application form.
Share Accurate Information
When applying for an online loan, it is important to provide accurate information. This includes your contact information, income, and employment history.
For a Personal Loan, finance companies require accurate information to determine your eligibility for the loan. Providing incorrect information could lead to delays in the loan process or even a denial of your application.
Double-check all the information you provide in your loan application to ensure that everything is accurate and up-to-date.
Before Applying for An Online Loan, Know Your Limits
Understanding your financial limitations is important before applying for an online loan. Only borrow the amount you can afford to pay back. Doing so will help reduce your stress and anxiety during the loan repayment.
The last thing you want is to be in a position where you cannot make your loan payments on time. This can lead to additional interest charges, late fees, and poor credit scores. If you are unsure how much you can afford to borrow, start by looking at your monthly income and expenses and use the personal loan calculator on the website of leading NBFCs. Make sure to include all your debts and obligations in your calculations.
Conclusion
If you stick to these guidelines, you should have no trouble getting your loan approved. So, go ahead and apply for the loan without delay.
