By maintaining a good credit score, preparing documents in advance, and choosing the right lender, you can significantly boost your chances of approval.
The article from Moneycontrol outlines several strategies for securing instant approval for a personal loan. It emphasizes the importance of having a high credit score, which significantly influences loan approval rates and terms. Lenders prefer a score above 750, but even scores between 600-750 can still qualify for loans, albeit with higher interest rates. The article advises maintaining a low debt-to-income ratio, ideally below 40%, to demonstrate repayment capability. It also suggests keeping existing credit card balances low, ideally below 30% of the limit, to positively impact your credit score. Additionally, having a stable job and income source is crucial as lenders look for employment stability. The piece recommends applying for loans from institutions where you already have a banking relationship, as this can expedite the process. Lastly, it warns against applying for multiple loans simultaneously, as this can negatively affect your credit score due to multiple hard inquiries.
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