Personal loans are emerging as the most preferred tool for financing emergency and aspirational needs. Today, you can avail an instant cash loan through multiple platforms. Banks, NBFCs, fintech companies as well as many independent lenders offer personal loans of varying amounts depending on your eligibility. But when choosing a personal loan, quick processing is one of the most important factors that you must check. Today, the best loan app can offer you small-ticket loans within 48 hours.
But if you want a loan of a higher amount then there are certain things you must know beforehand. Read on to discover 9 tips that will help you get your loan processed much faster.
7 Steps to avail a personal loan quickly
When applying for a personal loan, there are two things that you must note – the interest rate and the processing time. Most of the time, people apply for an instant cash loan to meet their urgent requirements. Be it clearing the medical bills or repairing your broken car, making a festive purchase or meetinga cash crunch, the need for money is often urgent.
While most lenders are trying to shorten the time taken to process a loan application, here are some of the things that you can do too –
Always maintain a very strong credit score
Your credit score is proof of your financial discipline. Lenders always consider your credit score when evaluating your loan application. Having a good credit score assures the lender that you are a low-risk borrower and the lender is more likely to offer you an instant loan. Many lenders also offer pre-approved loans to candidates having a high credit scores. Thus, maintaining a good credit score is a sure-shot way to get a personal loan quickly.
Keep all the necessary documents handy
Having all the necessary documentation ready when you apply for a loan can speed up the process. This may include proof of income, employment, and identification, as well as information about your debts and credit history. The more sorted your documents are the quicker will be your loan processing.Applying for a loan through the best loan app eliminates the need to submit physical documents. You only need to submit a handful of documents to get your loan processed.
Choose an app based lender
Traditional lenders often take longer to process your loan application. Their slow and heavy paperwork can make the long process much longer. In addition to that, traditional lenders rely on manual labor, unlike loan apps where the entire process is digitalized. The best loan apps rely on advanced artificial intelligence and machine learning to process your instant cash loan quickly.
Check your loan eligibilit
Different lenders have different eligibility criteria that you must meet to avail an instant cash loan. Before applying for the loan, read these eligibility rules and make sure that you meeteach of the criteria. Failing to meet the eligibility rules may result in loan rejection or delay in loan processing. Also, it is always best to go for a lender who has minimum eligibility requirements. This makes the loan process much smoother.
Compare different lenders
Different lenders have different steps to process the loan. Thus, the time taken to process the loan varies from lender to lender. Traditional lenders often take longer to process yourinstant cash loan. So, before applying for the loan, make sure to ask the lender about the time they would take to process your loan. Also, check out the best loan apps todiscover the best loan features that you can get.
Be honest with your information
Lenders do not approve your loan application without verifying the information that you provided. They cross-check everything, on your loan application as well as on the documents you submitted. Thus, providing accurate information will help you get the loan quickly without multiple iterations. You should also check for any mismatch on your documents and make the necessary corrections before applying. Any mismatch of information can lead to loan rejection.
Define a clear purpose for the loan
A personal loan does not restrict you in terms of the end-use of the loan amount. However, specifying the lender the purpose of your loan can expedite the loan process. If you need the loan for urgent purposes like medical emergencies, or home repairs, then mentioning it to the lender may help you get the loan quickly.
Choose a shorter loan term
If you are able to afford a slightly higher EMI, then go for a shorter loan term. Even the best loan app will consider a longer loan term to be a high-risk. Thus, the lender tends to run a lot of extra checks and verifications for the same.Shorter loan terms reduce the lender’s risk and thereby make your loan approval process quicker.
Today, availing aninstant cash loan is much easier with digital lending options like loan apps.But even with the best loan app, you must make sure to take the necessary steps to make your loan processing faster. Not submitting the requisite documents, not fulfilling the eligibility criteria, or neglecting a mismatch in the information can result in loan rejection or avoidable delays. Thus, make sure to keep the above points in your mind before applying for a quick cash loan.