6 Tips To Improve Your Personal Loan Application

Securing a personal loan can be a challenge. Especially if you have bad credit or limited income, it can be difficult to secure the loan you need. The key is understanding what lenders are looking for and how to make your personal loan application stand out from the rest.

In this blog post, we’ll discuss 6 tips that will help you improve your personal loan application and increase your chances of getting approved. From understanding credit scores to shopping around for the best terms, these tips will give you an edge when it comes to securing a personal loan.

What Is A Personal Loan?

A personal loan is a type of unsecured loan, which means that it is not backed by any collateral. Personal loans can be used for a variety of purposes, including debt consolidation, home improvement projects, or major life events such as weddings or vacations.

Must Do: What are the Required KYC Documents for Loan Approval?

How To Apply For A Personal Loan

Here’s how you can apply for a personal loan at SMFG India Credit:

1. Fill in the Initial Details

Enter your mobile number, PAN, pincode, and select your employment type (salaried or self-employed) to proceed.

2. Mobile Number Verification

Authenticate your mobile number by entering the 6-digit OTP received on your device.

3. Enter Additional Details

Provide your email address, date of birth, gender, and annual household income. Verify your email ID as well.

4. Enter Employment Information

If you're a salaried individual, provide your employment details for further processing.

5. Bank Statement Submission

Provide your bank statement through Net Banking, an Account Aggregator, or by uploading the document. This will enable us to generate a loan offer (salaried applicants only).

6. Complete Your Identity Verification

Take a selfie to complete the identity verification process and share address information through CKYC, Offline Aadhaar XML-based KYC, or DigiLocker.

7. Bank Account Verification

Provide your bank account details for verification to proceed.

8. Share Additional Information

Post bank verification, share information such as loan purpose, marital status, father’s name, and mother’s maiden name in the ‘Additional Details’ section.

9. Choose Re-payment Mode and Set Up E-NACH

Choose your preferred re-payment mode – debit card or internet banking – and set up E-NACH.

10. Review and Sign the Loan Agreement

Go through the loan agreement carefully, digitally sign it, and validate the process using the OTP sent to your registered mobile number.

Completing these easy steps moves you closer to achieving your financial aspirations.

6 Tips To Improve Your Personal Loan Application

When you're applying for a personal loan, there are a few things you can do to improve your chances of getting approved. Here are some tips to keep in mind:

1. Know your credit score and history
   Before submitting the application, it's essential to have a clear understanding of your credit score and credit report. This will give you a fair idea of your financial standing and highlight any negative points that might affect your loan approval.
2. Choose the right lender
   Different lenders have different eligibility criteria and interest rates, so it's advisable to research and compare various options before finalizing one. Look for a lender which suits your financial requirements and has a favorable reputation.
3. Be transparent and accurate
   When filling out the loan application, make sure to provide complete and accurate information. Lying or hiding information can harm your chances of getting approved.
4. Have a clear plan for the loan funds
   Lenders prefer borrowers who have a clear plan on how they intend to use the loan funds. Make sure to present a detailed plan that shows how you plan to utilize the loan and make timely repayments.
5. Assess your repayment capacity
   A personal loan comes with fixed monthly repayments, so it's crucial to ensure that you have the financial stability to make the payments. Consider all your regular expenses, income, and other debts before applying for a loan.
6. Reduce existing debt
   A lower debt-to-income ratio can improve your chances of getting approved for a personal loan. Consider paying off high-interest debts, such as credit card debts, before applying for the loan. This will not only reduce your debt burden but also show lenders that you are financially responsible.

Must Do: How Do I Know If I Qualify For a Loan?

Conclusion

With the right preparation and research, you can make sure your application stands out from the rest. Our 6 tips are designed to help you navigate the personal loan application process and increase your chances of successfully securing a loan that best fits your needs. 

So take some time to read through these tips carefully, understand what is required of you as an applicant, and use them as a guide when making your next personal loan application.

Get quick cash disbursements at affordable personal loan rates of interest, and amounts up to INR 30 Lakhs* from SMFG India Credit. Check your eligibility through our online calculator and go through the documents required for a personal loan. Apply now!