It’s November, we’re nearing the end of 2021, but the pandemic is far from over. Although we’re finally recovering from the economic slump, it still might have many people financially handicapped.
In times of such emergencies, it is always wise to be financially prepared. But if you need a helping hand, a personal loancan help! However, since these loans are unsecured, lenders can be stringent, and approval might be slow to come by. But fret not!
Here’s how you can boost your loan approval chances.
1. Regularly check your CIBIL score
Your CIBIL score remains one of the most vital factors in determining your loan approval chances despite Covid.
It is a three-digit numeric summary of your credit history, which lenders use to determine default risk and get a clearer picture of your creditworthiness and past repayment record.
According to experts, maintaining a CIBIL score of 750 and above is essential for securing personal loan instant approval. If you’re falling below the mark, make sure you improve your score by clearing all your existing debt, such as credit card bills, pending EMIs, etc. Also, repay all your dues on time and limit your credit utilization ratio.
2. Add a co-applicant or guarantor
If you fail to meet any eligibility criteria set by the lender, you can always opt for a joint loan with a co-applicant who has a good credit profile. This reduces the credit risk for the lender since the co-applicant is equally liable for the timely repayment of the loan. As a result, your chances of approval improve automatically.
3. Keep your debt-to-income (DTI) ratio in check
With the pandemic having caused massive financial instability, keeping your finances in check is critical, especially if you’re a prospective borrower. Ensuring a low DTI ratio is one way to achieve this.
To ensure speedy loan approval, try to maintain a low DTI ratio, ideally 40% or less. Also, make sure to use a personal loan EMI calculatorbefore obtaining the loan. It can help you understand loan obligations and plan ahead.
4. Avoid multiple loan applications
Filling out multiple loan applications in a short span of time can lead to various hard pulls. This, in effect, can bring down your credit score a notch. You might even seem desperate in the eyes of the lender.
Apart from the above, make sure to check your credit report from time to time for false or inaccurate enquiries. If any, raise a dispute immediately.
Additional Read: Factors that determine Approval of Personal Loan for Self Employed
Over to you
The pandemic has taken its toll on all of us, be it financially, emotionally, or physically. So, be smart with your finances and follow the above pointers for personal loan quick approval. If you’re facing a crisis, a loan lets you meet obligations and repay over flexible monthly EMIs, rather than dipping into your savings.
To help you do just that, Tata Capital offers loans over flexible repayment tenures and competitive personal loan interest rates.
So why wait? Visit our website to secure your finances with collateral-free loans from Tata Capital!