When you need financial help, a personal loan proves very helpful at this time. In today’s time, taking a personal loan has become easier than before, because now you can submit online applications without any hassle. But keep in mind that even a small mistake in a loan application can lead to rejection of your loan. Therefore loan application should be filled very carefully. Through this article, we are going to give you such information, with the help of which you can fill your application properly and avoid the process of loan rejection.
Be sure to attach details of your assets in the application
Details of any type of collateral can prove useful in support of your loan application. Giving the details of the collateral increases the chances of getting a loan on better terms. So while applying for the loan you should mention the collateral. This can help to secure your loan. In addition, you should also be informed that you have a stable job and are employed in a reputable company and therefore you are able to repay the loan. This means that you should apply in such a way that you can give creditor confidence and guarantee that you are capable of repaying the loan taken on time and are a responsible borrower. For the loan, you have to first apply online or offline and get the approval of the bank. For the approval of your loan application, you may have to submit a well-planned repayment plan to the bank. You may have to submit documents such as income certificate, address proof, identity card etc. to the bank.
Keep all documents ready
Every bank needs a set of documents to decide the eligibility of the borrower. Banks fully verify your credibility as a borrower, so it is no surprise that you have to submit your financial records to prove that you are a good borrower. Banks look at your income and your previous loans and decide how much loan amount to approve. If you keep all your documents ready, this accelerates the verification and approval process. You have to submit the following documents to the bank –
- Identity proof – You must provide a photo ID. For this, you can use a driving license, PAN card, Aadhaar card or passport.
- Proof of age – One can submit any documents like a PAN card, driving license, Aadhaar card or birth certificate.
- proof of address – For this, documents such as rent documents, lease agreement, passport, voter ID card, driving license, Aadhaar card or water, electricity or gas bill can be submitted.
- Credit Card Statement – Banks can use this to evaluate the EMI you are paying.
- Income Document – This is an important part of a loan document. Every applicant has to submit his salary slip and bank statement for the last three months. Along with this, banks can also ask you about the current loan. With this, they want to know whether you can pay the EMI of these loans with your monthly budget.
Select a bank after researching and comparing
Applying for a personal loan without any research is one of the most common mistakes made by a borrower. If you apply without research and take a loan from the wrong bank, you may have to repay the loan amount at a higher interest rate. Therefore, before selecting a bank for a loan, the offers and interest rates of different banks should be compared. For this, you can take the help of online aggregators. It is not right to select loans already approved or to finalize the first offer for the personal loan. Take time to research and compare and then select the bank and offer. Compare how much EMI is being offered by other lenders, along with the interest rate. Select this option only if the EMI fits your monthly budget easily. Along with this, compare the processing fees, prepayment options and prepayment charges etc. and only then take the final decision.
Keep good credit history
Credit history is the most important factor for approval of a personal loan. Lenders look through your credit history to see how you manage your money and how responsibly you can manage a loan. A good credit history means that the bank can rely on you for timely repayment.