In order to fund your personal requirements and goals, you may have tried applying for a Personal Loan in the past and faced rejection. This may be due to a variety of reasons such as unstable income, not matching the eligibility criteria, or a low credit score. However, making mistakes in the past doesn’t mean you cannot get a Personal Loan now. In order to get approval on your instant Personal Loan application and access finances for various planned and unplanned personal needs, first boost your credit score and then pay attention to various factors relating to lenders and their terms.
Here is how you can you can get quick approval on your Personal Loan, despite having faced rejection in the recent past.
Determine the cause of rejection
It is essential to know the reason why your application has been rejected in order to eliminate the weakness in your application. In order to know why your application has been rejected you can ask your lender for the same. The most common reasons for rejection of a Personal Loan are:
- Inadequate income that casts a shadow on your repayment ability, especially for a collateral-free loan like a Personal Loan
- Low or no credit score that features the absence of creditworthiness
Eliminate chances of rejection
Here are some tips to fix problems in your loan application that led to a rejection.
- Pay off any existing debt to increase your credit score
It is possible for your outstanding debt to get in the way of your new Personal Loan application. After analysing your existing loans and credit card dues, lenders can wonder if you will be able to support timely Personal Loan EMI payments. So, by clearing debts before applying for a new loan, you can increase your creditworthiness.
- Increase income and maintain job stability
A raise at work or a new source of income can prove to lenders that you can support Personal Loan EMIs irrespective of your current debt. Additionally, if you maintain job stability, the lender will be assured of a guaranteed source of funds, which in turn, makes you seem like a more reliable borrower.
- Check your credit report for errors
If you have a low score but have recently paid off a debt, check your credit report to make sure there are no errors. Ensure that it contains updated information regarding your recent financial dealings. If you see an error in your credit report, raise a dispute to resolve the same. This can help increase your credit score when the dispute is resolved and help you look like a safe bet for a Personal Loan.
- Choose a lender with easy eligibility criteria
Looking for a lender with easy Personal Loan eligibility criteria can increase your chances of getting a Personal Loan. So, view different lenders and their eligibility criteria to know where you have high chances of getting a loan. For instance, Personal Loan has easy eligibility criteria that can be easily calculated in the matter of clicks with a Personal Loan eligibility calculator. Furthermore, you can benefit from low Personal Loan interest rates, a comfortable repayment tenor, and a Flexi Loan facility with interest-only EMIs.
- Apply for a Personal Loan with a co-signer
If your credit score and income is lower than the prescribed limit, you can apply for a Personal Loan with a co-applicant who has a better credit score and income. This is because lenders will consider the fact that your repayment obligation is shared between two borrowers, reducing their lending risk.
Now that you know how you can get approval on your Personal Loan application, don’t forget to plan your repayment in advance using a Personal Loan EMI calculator. Pre-approved offers are available on a range of financial services like Personal Loans, home loans, business loans etc and help you save more time.