Tips on How to Get Your Personal Loan Approved
The history of consumer financing is not very old in Pakistan. Banks started offering personal loans little over 10 years back. In most cases bank advances money without a collateral, however, there is stringent know your customer (KYC) SOP that a bank follows before the personal loan application is approved. By nature, personal loan is relatively easier to get in comparison to auto loan, credit card or a home loan.
When a person applies for a personal loan he has already made up his mind how the money will be spent and how his immediate need will be resolved. The scope of use of a personal loan is pretty wide, it varies from a person to person; a sudden wedding in the family, house renovation, filling up the gap while a heavy purchase is done such has a house or an automobile or simply funding a dream vacation and or going for a honey moon. If for any reason personal loan application is rejected everything crumbles down. Frustration and stress takes over with tremendous embarrassment. This could have been avoided if the personal loan application was carefully made with tedious comparison between personal loans and loan providers.
If you are in need for a personal loan and are about to file a personal loan application the below tips will help you avoid unnecessary delays and embarrassment if the personal loan application is rejected:
- Be honest provide correct information: As mentioned earlier personal loans are relatively easier to get, this does not mean a person can just walk into a bank branch and come out a satchel full of money. The first step towards having a personal loan is filing a personal loan application with utmost care. The data should be true and transparent. Any misappropriation or concealment will result in out right rejection. You must know in this era of integration, banks have their means to find out the financial health of the applicant
- Calculate what your need, don’t ask for excessive personal loan: Determine the amount of money you are seeking as a personal loan. This should be weighed viz a viz your income and the monthly expenditure. Do you have enough leftover to pay your installments? It is strongly advised to seek a loan amount whose monthly installments can be managed conveniently each month
- Be sure of your credit history: The bank does not judge you by your attire, they would want to make sure you have credit worthiness. This means looking into the past financial history; how many loans you have already taken, late or non-payments on credit cards, will you be able to pay installments on time. What is your income and expense. Instead of bank informing you, assess your credit rating yourself, apply for an amount that corresponds to your income
- Compare personal loans: There will be several banks who would be willing to advance and approve your personal loan application. The interest or mark-up rates of banks vary to a great degree. Besides the interest or mark-up rates banks have a tendency to downplay fees and several hidden charges. This needs to be methodically investigated. The best way is to compare personal loans. This will not only save applicant hefty amounts but also nasty surprises in the future. It is therefore essential that you compare personal loan from various banks before actually filing a personal loan application
- Avoid desperation: Do not apply to many banks at one given time. Out of desperation applicant assume that at least one application will be approved, this is a wrong approach. What you are doing is signaling banks that you are cash starved and may not be able to pay installments on time. It is advisable to select one potential bank where you feel approval chances of loan application is high. It is also recommended to have a minimum period of 6 months between personal loan application whether the last personal loan application was approved or rejected.
In a nutshell, personal loans can be helpful in short term, there is no reason to be ashamed while you decide to file a personal loan application. That fact also remains that a person must recognize that a personal loan should be taken for a valid reason not to upgrade his lifestyle and meet unnecessary expense. Before submitting the personal loan application, the applicant must also go through systematic approach and compare personal loans to avoid unnecessary bank charges and rate of interest.