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7 Tips to Get Your Instant Personal Loan Approved Online in India

7 Tips to Get Your Instant Personal Loan Approved Online in India

In the digital age, an instant personal loan online has become increasingly popular in India. This loan is offering quick financial solutions to millions and India is witnessing a surge in digital lending. The personal loan market is reaching an estimated value of ₹8.5 trillion by 2024. As more Indians go digital for quick financial solutions, instant personal loans online have become increasingly popular. These loans offer a convenient way to address immediate financial needs without the hassle of traditional banking procedures. However, with the

Reserve Bank of India reporting a 12.3% year-on-year growth in personal loans as of March 2024, lenders have become more selective in their approval process. To stand out in this competitive landscape, where nearly 40% of personal loan applications face rejection, it’s crucial to understand what lenders look for.

7 Essential Tips to Get Your Instant Personal Loan Online Approved in India

1. Maintain a Good Credit Score:

Your credit score is a crucial factor in loan approval as it reflects the financial health of the borrower. In India, a CIBIL score of 750 or above is considered good for approving an instant personal loan online. To maintain a healthy score:

  • Pay all bills and EMIs on time. Prepaying loans can also boost your credit score
  • Keep your credit utilization ratio below 30% of your total credit limit
  • Don’t apply for multiple loans in a short period as it reflects poor financial health

According to TransUnion CIBIL, 79% of loans approved in India go to borrowers with a credit score above 750.

2. Ensure Stable Employment and Income:

Lenders prefer applicants with stable employment and a steady income. Most online lenders in India require a minimum monthly income of ₹15,000 to ₹25,000. While some lenders like FlexPay provide an alternative to a personal loan for salaried professionals with just a minimum monthly income of Rs.4,000. If you’re self-employed, be prepared to show consistent income through IT returns for the past 2-3 years.

3. Check and Meet Eligibility Criteria:

Each lender has specific eligibility criteria. Common requirements include:

  • Age: Between 21-58 years
  • Income: Stable source of income
  • Work experience: 1-2 years minimum

Before applying, carefully review these criteria to avoid automatic rejection.

4. Keep Your Documents Ready:

Having all necessary documents prepared can speed up the approval process of a personal loan for salaried or otherwise. Following are the mandatory documents every lender takes-

  • PAN card
  • Aadhaar card
  • Salary slips (last 3 months)
  • Bank statements (last 6 months)
  • Address proof

Many online lenders in India now use KYC for faster verification, so ensure your documents are up-to-date.

5. Choose the Right Loan Amount and Tenure:

Before you apply for a loan assess your need very well. It will save you from borrowing more or less than you need. Request a loan amount that aligns with your income and repayment capacity. The ideal EMI should not exceed 40-50% of your monthly income. Opting for a longer tenure can lower your EMI but may result in higher overall interest on personal loans online.

6. Be Honest in Your Application:

Providing accurate information in your loan application helps in fast loan processing as it eases the verification. Any discrepancies or false information can lead to immediate rejection. Remember, most lenders in India use advanced algorithms to cross-verify information quickly.

7. Compare Lenders and Choose Wisely:

With many lenders for a personal loan online in India, it’s crucial to compare options. Look at factors like:

  • Processing fees
  • Interest rates
  • Customer reviews
  • Prepayment charges

According to a 2023 report by the Digital Lenders Association of India, there are over 1,000 digital lending apps in India, highlighting the importance of careful selection. To save from any fraud or discrepancies, you must look into all the details while taking a personal loan online.

Additional Considerations

  • Digital Footprint: Some lenders use alternative data for credit assessment. Maintain a positive digital footprint.
  • Pre-existing Loans: Having multiple ongoing loans can reduce your chances of approval.
  • Employer Reputation: Working for a well-known company can positively influence your application. Also, your term with a particular profession matters. When you change your place and or nature of your job frequently, it reflects insincerity and you might be considered as a not responsible borrower.

The Current Landscape

The market for personal loans online in India is booming. As per RBI data, personal loans for salaried and others grew by 23.5% year-on-year in 2022. The average time for loan approval and disbursement has been reduced from days to hours. Some fintech providers claim to process loans in as little as 5 minutes. However, with convenience comes responsibility. The RBI has implemented strict guidelines for digital lenders to protect borrowers. Always borrow within your means and from RBI-registered entities.

By following these tips and staying informed about the lending landscape in India, you can significantly improve your chances of getting an instant personal loan online. You can also look for alternative credit solutions which are reliable and provide quick credit support. FlexPay line of credit is one such Fintech provider that offers you the best alternative to a personal loan for salaried.

Why FlexPay?

It is a loan offering from Vivifi India Finance Private Limited, a non-banking finance company (NBFC) registered with the Reserve Bank of India (RBI).

It is a line of credit that helps to cover the emergency needs of Indians. It aims to aid the finances of everyone facing a mid-month or month-end cash crisis until they receive their salaries.

It offers instant credit from Rs. 500 to Rs. 3,00,000 with flexible repayment terms.

You can get approval on the credit limit based on your bank statement and credit health. It’s a time-saving credit option that comes with a streamlined application process, minimal and digital documentation and KYC for verification. While this is an easy-to-apply-for credit facility, it’s equally smooth in repayment for its EMI-free payback options.

This is the ultimate credit option to meet your different, multiple and discrete monetary needs. Being a line of credit and an unsecured credit option sets it apart from any traditional loan option. Unlike the latter, it’s an unsecured line of credit. Here, interest accrues only on the amount spent. It eliminates the burden of lump-sum interest payments irrelevant to usage. Maintain this as a permanent credit back up. You can renew your credit limit anytime simply based on a good borrower’s behaviour.

Experience the convenience first hand—download our app or visit the official website. Apply for this credit line and get the credit within 24 hours after the approval.  FlexPay stands not just as a credit facility but as a flexible financial partner tailored to your needs.