Unlike secured loans such as home or car loans, personal loans do not require any collateral or security. This makes them a convenient option for meeting various personal financial needs like medical emergencies, travel, weddings, education, home renovations, or debt consolidation.
A personal loan often proves to be a timely solution when one is in urgent need of funds. Be it a medical emergency, home improvement project, or sudden financial burden, instant personal loans offer quick relief by ensuring hassle-free access to money with minimal waiting time. At times, you may need a personal loan to meet specific needs or responsibilities. In such situations, timely and swift loan approval becomes essential — delays can disrupt your plans and cause unnecessary stress. That’s why it’s important to follow a few smart strategies before applying, to ensure a smooth and quick approval process. Here are some expert tips that can boost your chances.
Apply online for faster processing
Use online platforms like your bank’s official website or mobile app to apply for a personal loan. With just a few clicks, you can complete the application process from the comfort of your home using a smartphone or laptop. Opting for digital financial services with minimal documentation helps speed up the approval process significantly.
Apply with a co-applicant
Adding a co-applicant with a strong credit history, steady income, and long credit record can enhance your loan eligibility. This increases the chances of faster approval — especially if you fall short on some of the lender’s eligibility criteria. It also minimises the risk of application rejection and avoids the hassle of restarting the process.
Maintain healthy credit score
Your credit score (CIBIL score) plays a vital role in loan approval. A high credit score along with meeting other eligibility norms can fetch you instant approval from most banks. Timely repayments of previous loans and credit card dues are one of the best ways to maintain a strong credit profile.
Highlight additional income sources
Lenders assess your financial stability and repayment capacity before approving a loan. While your main income source is the primary basis, disclosing secondary income — like rental income, interest or dividends from investments — can strengthen your case and help secure quicker approval.
Avoid applying for multiple loans at once
According to Aditya Birla Capital, applying for multiple loans simultaneously can negatively impact your credit profile. Financial institutions may view it as risky behaviour, leading to rejections. Instead, shortlist a few banks, check your eligibility with each, and go for the one offering simple terms and higher loan amounts.
Choose shorter repayment tenure
If feasible, opt for a shorter loan tenure. Banks often consider short-term loans as lower risk, since the borrower is more likely to repay quickly without defaulting. This can work in your favour. However, always evaluate your monthly budget before choosing a shorter EMI plan.
Apply with your existing bank
Applying with a bank or financial institution you already have a relationship with — especially where you have had a good repayment history — can significantly increase the chances of faster loan approval. Familiarity and trust go a long way in banking.
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