Major Problems That You Should Keep In Mind While Getting Loan Approval

Posted by Bhavna Singhal on November 16th, 2018

Though lenders often promote that their loans are easily available, they are careful when they approve a loan application. Your financial capacity to repay the loan is given priority before your loan application is approved. Moreover, a lot of factors are considered by a lender before approving a loan. If you don’t keep these factors in mind, they can become a problem in your loan approval. It is, therefore, best to keep these problems in mind to avoid them. Here is a quick checklist of problems to be remembered when you are applying for a loan –

• Meeting the eligibility criteria

Lenders prescribe an eligibility checklist for borrowers who can apply for a loan. Before making an application you should check whether you meet the eligibility criteria laid down by the lender or not. If any qualification is lacking your loan approval would be jeopardized and you might not get the loan. So, the first problem which you should tackle is making sure that you fulfil the lender’s eligibility criteria.

• Having the required set of documents

After checking that you meet the eligibility criteria prescribed by the lender, you should check your documents. A complete set of documents are required when applying for the loan so that the lender can check your loan application and approve the loan. Any missing document would cause a problem with your loan approval. So, find out the documents which would be required for the loan and ensure that you have all such documents handy when applying for the loan.

• Affordability of the EMI

EMIs are how you pay off the loan that you avail. Since the repayment continues over a longer period, your EMIs should be affordable. If the EMIs are not affordable, it would become difficult for you to repay your loan. Online EMI calculators are available which help you in calculating the most affordable EMI for the loan. Use the calculator to set the EMI which would suit your pocket and then apply for the corresponding quantum of loan. When the lenders see that the loan applied is feasible to be repaid, your loan approval would be quick.

• Good credit score

Your CIBIL score is an important parameter which lenders judge before approving your loan. Having a credit score of 650 or 700 and above is a prerequisite when applying for the loan. Always check your credit score before you apply for the loan. If the score is low and below the minimum parameter fixed by the lender, build up your score before you apply for the loan. If you apply with a bad credit score your loan would either be rejected or you would be allowed a loan with higher interest rates.

These four problems should be thoroughly examined before applying for a loan. If you take care to manage these problems and ensure that each point is taken care of, your loan approvals would be an easy affair otherwise you would face grave problems in getting your loan approved. So, keep these points in mind and then apply for a loan.