Personal Loans - Frequently Asked Questions


How to Improve your Odds of Getting a Personal Loan?
Getting a personal loan is not always easy, at least not as easy as the ads and websites want to tell you. It is still tough because loans are limited while the people coming for them are too many. What you need to do in such a situation is to stand out.

Here are the steps to do just that!

Clean up your credit: One of the top criteria for any loan is to have a good credit score. Do, is your credit score up to that mark? Each bank and most NBFC have specific credit score level criteria. In case your credit score is not there yet, don’t worry. There are many ways to increase the score. You should also check your credit report for any errors. If you find any, report those immediately to CIBIL.

Balance up your debts and income: All lenders, regardless of banks and NBFCs, will ask for your income level. You may not be able to increase your income immediately for getting a loan, but you can still bring down your debts and liabilities, and that goes a long way! Consider paying off your debts first before taking a new loan. Think about selling off stocks and of taking a part-time job. These will increase your annual income, your debt-to-income ratio, and by extension your chances of getting a personal loan.

Consider having Guarantors/Co-signers: Some personal loans actually require you to have the support of Guarantors and Co-signers, especially if you have never taken loans before or if you are a student. In any case, the person you should choose for this needs to be one with a good credit score like 750.
Borrow less: A thumb rule when it comes to money is never to borrow more than what you can pay back. In other words, “don’t bite more than you can chew”.

Choose the ideal lender: Not all lenders have the same requirements. Some may have easier requirements while others may have more stringent ones. Pick the one whose criteria is met by you.

By the way, don’t apply with multiple lenders at the same time. They will all inquire into your credit score, which brings it down.

How can you get a personal loan without any documents?

Lenders need to see your documents for verification purposes. In fact, some loans depend on your credentials and various other factors like your location. For instance, you can get lower EMIs for some loans if you live in specific areas, like non-metro areas. But for that you do need to show your address proof.

However, if you can’t furnish your documents at all, don’t worry yet. It’s not the end of the world. Loan application paperwork is minimized thanks to the advent of Fintech. You can get your loans sanctioned with a minimum of paperwork. Besides, it can all be done online, and you can get your loan sanctioned in a matter of minutes!

Here’s what you need to do in such situations:

Choose a lender you know well: If you have already taken loans from a lender before, it’s a good idea to take from them again. They know your trustworthiness already, and may already have all your documents. This can be one of the best ways to get a personal loan without documents.

Have a high credit score: Few lenders will turn you away if you have a high credit score. Having a high credit score means that you are trustworthy with credits. Banks and other lenders may just yet overlook your lack of documents and sanction the credit.

Take loans with instant approval feature: Many NBFCs and even some banks offer this facility, by which you can get your loan sanctioned with minimal documentation. Indeed, in as few as 5 minutes you can get credit deposited in your account.

Get a pre-approved offer: Pre-approved offers give you the ultimate experience of document-free loans. Search online which loan is pre-approved based on your profile. Select one, and it’s done!


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