Loans are no longer considered a last resort to purchase the desired smartphone or dream home. Over the past decade or so, people have become less reluctant to apply for a loan, be it personal, car, educational, business, or home.
It also helps banks make it easy for customers and prospective lenders to obtain loans with minimal paperwork, quick eligibility checks, and competitive interest rates.
They have opened an online channel to request and submit documents for the approval process. If you still find the loan application and review process intimidating, here is a list of factors that will determine your submission approval.
Your credit history indicates your future payment behavior, which is based on your past debt settlement pattern. This helps lenders determine if you will be punctual and regular with your payments.
Banks weigh your work history and current commitments to ensure your source of income is reliable. A bank wants to make sure that your income is stable.
If you work with a reputable company like Blue Chip Company, your chances are just as good. Professionals like doctors, CA, engineers and lawyers are also considered safe. The idea is that your ability to repay a loan depends on your income, so the source must be reliable and consistent.
As mentioned above, your income represents your ability to pay. Lenders evaluate your earning potential in light of current loan obligations, dependencies, source, and term. If this is found to be undesirable, the lender might deem you too thin and likely to default.
Similarly, many lenders prefer applicants who have filed their IT returns and paid taxes over those who have filed tax-free returns because their income was not taxable.
Your eligibility improves if you can show additional sources of income. This indicates a better ability to pay because you have more than one source of income.
If you choose a shorter repayment period, you have a better chance of getting a loan approved. Many lenders favor applications for a payment period of up to five years. So keeping it short is a good way of getting loan approval.
The collateral you provide at the time of application can help you obtain a loan quickly and easily. Since the loan amount is a percentage of the assessed value of the collateral, higher-value assets mean that more credit can be approved for use.
This can be real estate or personal property. While personal loans are unsecured loans, loans to buy a car or home, run a business, or study will not be approved unless there is adequate collateral. Familiarity with your financial past helps the lenders determine your current financial health.
With the advent of technology, getting loans has become fairly easy with online loans. For instance, with pinjaman uang Kredit Pintar, you can get fast loans that are approved within five minutes.
As long as you meet their eligibility criteria, you are good to go. With features like data security and confidentiality and round-the-clock customer service, taking loans and making payments is really easy. Maintaining a good credit history and finances will work in your favor as well.