In order to escape from deteriorating financial health or to gain support during an emergency, instant loan is a one-stop solution to your problems. Instant loans are easier to avail, require lower compliance, quick disbursement of funds and come with a plethora of benefits. However, instant loans are available to salaried employees and are not an option for self-employed or business owners. A salaried employee living in a tier 1 city needs to earn more than Rs. 20,000 per month; an employee residing in a tier 2 city must make more than Rs. 15,000 per month to avail of an instant loan.
Here are some of the reasons why your instant loan might not be approved:
- Low credit score: When you apply for an instant loan, your credit score is verified. If your credit score is below 700, your loan might not be approved. In order to have a good credit score, you need to maintain it above 750.
- Low income: If you are not meeting the lenders’ criteria like income requirements or some other statutory requirement, you may not get an opportunity to have your instant loan approved.
- Inaccurate details: Whenever you apply for an instant loan, you must provide your personal details. Once you provide these details, they are verified by the lender, and your instant loan gets approved only when your details get checked out. If you provide inaccurate details, they might reject your instant loan.
- Too many loans: If you depend on credit/ personal loans a lot, then your application for a personal loan might be rejected. In order to have an instant loan, you need to maintain the number of loans you avail of, and you need to maintain a healthy credit score.
- Job instability: Most lenders have criteria wherein they provide loans to employees who have been working at an organisation for at least a quarter (period of 3 months) or more. This period indicates stability. If you are someone who has been employed for a period of less than 3 months or switched too often, it may hamper your chance of getting an instant loan approved.
Here is what you need to do in order to get an instant loan approved:
- Maintain a healthy credit score and keep a check on your credit score at regular intervals.
- Ensure that you are meeting lenders’ requirements with respect to the salary, job stability and more.
- Always provide accurate details and correctly answer the lender’s questions regarding your instant loan.
- Do not avail too many loans, as it reflects poorly on your image when it comes to managing money. It can also have an adverse effect on your credit score too. One solution is to consolidate your debt so that it becomes easier to track all the loans.
If you are someone who has not been getting success with respect to instant loan approvals, kindly refer to the points above & understand them on a deeper level to get control of your financial health.