Blogs
Personal loans are designed to be fast, often approved and disbursed in minutes, compared to traditional bank loans. They come with speed-oriented features, such as a paperless process, quick document checks, collateral-free borrowing, and direct bank transfers, among others.
However, a single mistake in your application for a personal loan can trigger a potential delay or even rejection. This written piece consists of common mistakes you must avoid, ensuring hassle-free access to funds without a wait. Let’s figure them out in detail.
Missing pages in bank statements, blurry PAN/Aadhaar uploads, mismatch in name, DOB, or address provoke re-verification or even rejection. Ensure that the documents are complete and soft copies uploaded clearly reflect the information before making an application. It ensures a hassle-free application and swift approval without a wait.
Wrong mobile number or email, incorrect income or employer details, or spelling mistakes reduce the likelihood of quick approval. For example, entering an incorrect phone number will only delay the registration procedure. Similarly, providing an inaccurate email will trigger delays in eKYC or getting OTPs.
Many believe that applying for too many personal loans simultaneously will increase their chances of approval. Unfortunately, what happens is exactly the opposite. After each application, lenders pull your credit report and initiate a hard inquiry. Multiple credit enquiries hit your CIBIL, resulting in a significant dip. Also, you seem credit-hungry to lenders, making them believe you’re a high-risk borrower. This significantly dents your approval chances or even leads to high interest rates or cut back on the loan amount.
Eligibility criteria vary from lender to lender, consisting of age, income, employment, nationality, residential area, CIBIL score, etc. Make sure to review them carefully before you apply for a personal loan. For example, banks, NBFCs, or financial authorities take employment type and monthly salary into consideration to assess your repayment capacity. They are likely to turn down your application if your income isn’t parallel to the amount you’re seeking. Therefore, always ask what is practically feasible to give.
As mentioned above, a hard inquiry is initiated after every loan application, involving all the loans you’ve obtained before it and current loans. Therefore, there is no room for hiding existing loans. Doing so will only trigger suspicion, and questions may arise about your creditworthiness. Consequently, lenders may consider re-verification, charge a hefty interest rate, or even turn down your loan application.
When it comes to quick paperless loans, lightning-fast approval and disbursal, swift bank transfer, minimal documentation, etc., remain the key highlights. However, you must not skip reviewing the interest rate and hidden charges as they’re equally important to consider. Not doing so may lead to financial shocks or long-term debt later.
Therefore, it is always advised to choose only RBI-registered NBFCs, such as SalaryOnTime, for credibility and a smooth borrowing experience. Check your eligibility with SalaryOnTime and get up to ?1.2 lakh in just 10 minutes—without a CIBIL check, hidden charges and collateral.
Our blogs, articles, case studies, etc., are a go-to source for acquiring invaluable insights into finance, budgeting, and current fintech trends. Discover pro-tips, advice, and strategies to get on top of your budget and personal finances.