Loan

How to Increase Your Chances to Get a Loan from Bank?

A personal loan remains unsecured as you do not need collateral to put up against it. The bank or the financial company that you are dealing with will therefore ask you about personal details beginning with your name, residential address, income status, credit reports, and tax returns.

How to Get a Loan from Bank?

You have to earn a steady income to obtain the mere basics of life. Unfortunately, the salaried section as well as the small business owners in India often finds it difficult to save money for a rainy day. The wishes of owning a good home or a vehicle usually remain unfulfilled therefore. It does not have to be so always. There are numerous banks as well as the non banking finance companies that advertise a host of easy schemes for obtaining loans at a modest rate of interest. 

Sadly, not all of them stand by their promises as the common man on the street knows from his personal experience. Yet, there are a few companies that assist the individuals seeking loans to get the right amount without having to submit a huge number of documents and then delay the processing of papers indefinitely. Applying for an Indiabulls personal loan is easy and can be done within minutes today. Every citizen of India can thus acquire the loan amount easily today without having to run from pillar to post.

Sure, you can opt for a personal loan when you need to buy pricey products or want to renovate your home to make it more comfortable. Purchasing the vehicle that you have had your eye upon can also be possible with the aid of a secured loan from a bank of NBFC of repute. Taking a vacation, arranging for your daughter’s marriage and buying the luxurious items that you had long put off can come true at one single stroke i.e. via the might of a personal loan.

Well, you may not have any inkling about the ease of getting one but suddenly wake up to the fat when you receive a phone call from a particular bank offering you a good amount of money as loan. It will not do to jump at the prospect instantly though. Take some time to think and then proceed to learn about the terms and conditions that you would have to fulfill. Have everything in order before you go ahead and apply for it by approaching the lender of your choice. A rejection might come as a shock startling you out of your wits. After all, you had hoped to have the amount in your hands by now and no questions asked. So, what had gone wrong in the meantime?

Well, there could be plenty of reasons for the lender to find you unsuitable for receiving the loan. You simply need to assess your situation and learn the ropes properly by consulting with an expert who is well versed in financial dealings especially the in and out of personal loans in India. So, it would be wise to ask yourself the following questions and be fully satisfied before submitting that all-important loan application. The chances of you obtaining the loan will be bright indeed once you have met all the necessary criteria.

Have you found a lender?

Yes! There are numerous lenders in the market who would be happy to offer a personal loan. However, you must also check the ability of the concerned lender before signing on the dotted line, agreeing to take the offer. Internet has made things easier today. So, go ahead and do a bit of research into the history of the bank or any other financial institute that you may have in mind. Find out the types of loans offered by them but most importantly remember to look at the reviews. Turn to the lender that has a good standing and has satisfied its customers.

Are you eligible for the loan?

Remember that a personal loan remains unsecured as you do not need collateral to put up against it. The bank or the financial company that you are dealing with will therefore ask you about personal details beginning with your name, residential address, income status, credit reports, and tax returns. You would also have to be an adult i.e. over the age of 21 to secure the loan with the upper age varying from institution to institution. However, a majority of the lenders look at borrowers below 60 as the most suitable ones.

Do you have debts that need to be paid off?

It makes sense to approach a lender for a loan when you have no outstanding ones. While you may have enough income to handle more than one loan at the same time but the lending institutions will be worried about losing their money. It would be best to pay off the other loans before asking for a new one in order to strengthen your cause.

Do you have all the required documents?

Admit it! You just cannot do without a bunch of documents as you sail through life. The lenders will not overlook the need either. Do make sure to have at least your photo ID card and income proof handy along with your bank account details. You also need to submit a certificate proving that you reside at a particular address. So, go through the document carefully and update them if they happen to have inaccuracies. You have to submit the necessary copies along with the application. Be extremely cautious about this step though as many applications get rejected on account of faulty documents.

What is your credit score?

Check out your credit score and see whether you meet the criteria. You need to score between 300 and 900 to make the mark. Anything above 750 will help you clinch the loan. So, take care to keep it high well before you apply for a personal loan.

Do you really need that much?

Ask for the money that you need. While you may aspire to buy many things at once, take it easy. Apply for the amount you really need instead of asking for a huge sum of money. The lenders will be sure to check your income and tally it with your needs. Your loan is likely get ejected outright if the gap happens to too wide.

You can also check out the information on Indiabulls personal loan webpage and satisfy yourself fully before submitting the application. Good Luck!

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Harish Yadav

Finance and market analyst and chief writer on howtofinance. Passionate to read books and articles on marketing and accounting. Also edits other articles and publish them here.

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