If you’re a first time borrower, then keeping a stable bank account is quite tedious. Bank accounts cannot always be maintained, same is the case for cheque bounces and repayments. Banks and financial institutions usually keep a track of your savings account if you’re applying for a personal loan.
Since, when you’re new, there’s barely any credit history. There are some important factors to be taken into view before granting personal loan approval.
Lending institutions prefer to give small loans to beginner’s/ credit customers, with zero experience of the environment. Infact, individuals with limited credit history from reputed credit bureaus like Equifax, CIBIL, Experian etc. They evaluate your credit standing basis the information available from unconventional sources like phone bills, utility bills, rent agreements, etc.,
What do you understand by a Personal Loan?
An unsecure loan backed by no collateral guarantee taken by borrowers from a bank/ financial institution to fulfil financial commitments. This proposition comes with multifaceted versatility at a reasonable rate of interest. The loan tenure fluctuates between 5 years to 20 years. Also, the loan amount shifts from one lender to another. Based on the determinants (income, credit score, employment past, repayment capability etc) the loan amounts can be decided upon.
Steps for quick Personal Loan Approval
Let’s chalk out the sequence of steps for quick Personal Loan Approval for First Time Borrowers
Compare: The most important step is to check online and compare the best available options/ lenders. This is specially under the case where you do not have a prior history. So, begin comparing the different aspects of a personal loan like: it is advisable to compare lenders on different parameters such as:
- Rates of Interest
- Loan Tenure
- Loan Amount
- Processing Fee & Other Charges
- Disbursal Time
Watch Your Requirements: Think differently for yourself. Apply for an instant loan online when you need it the most. Do not over obliged with additional money. This will substantially reduce your repayment burden.
Learn Your Eligibility: Even the lenders extend loan approval to those who fulfil the requisite eligibility criteria. Lending institutions will directly accept or reject loan applications on failing to meet eligibility criteria.
Relationship with a Lender: Your previous relationship with the bank/financial institution matters when you need to receive an immediate approval on the loan.
Self-verify your CIBIL/Credit Score: Whenever you’re the first time loan borrower, you will have a ridiculously low score. Since every lender will prefer a good credit score borrower, you must validate your credit score beforehand. Your borrower creditworthiness is the key to a low risk personal loan at the earliest. This makes their lending risk-free to some extent.
How can first time borrowers get instant loans when they do not have old credit history they don’t have any prior credit history?
Consider short-term instant loans for easy and fast payouts. This will also help to build your credit score along with a valid creditworthiness. For a bigger amount, you can engage a co-applicant/guarantor. This participant may have a strong credit history which will back your borrowings well. We can also suggest you to go ahead with pre-approved loans. A potential pre-approved offer is offered to people with solid savings account.
Just remember to not take multiple loans at the same time. This will be as good as self-destructing your position in the market, as every single enquiry hits your credit score.