A personal loan is a collateral-free loan, which is unsecured and generally takes little time in procession. The lenders process and approve the personal loans within a few hours, and you must comply with the lender’s prerequisites to get your loan approved. However, you may need to boost your application in several ways to ensure it gets approved quickly. Are you thinking of applying for a personal loan from HDFC Bank? Whether you need money for education, personal, or professional reasons, the bank has several products to cater to your needs. But how do you increase your chances of getting approved for a personal loan from HDFC Bank?
Below is a list of all the ways you can boost your loan application and increase your chances of seamlessly securing an HDFC personal loan. The loan has several features that you can benefit from.
6 Ways of Improving Your HDFC Loan Application Approval
Improve your chances of getting an HDFC personal loan by implementing the methods below.
Improve CIBIL Score
Don’t worry if you do not have the required credit or CIBIL score to get the loan since there are several ways to improve the score. One of the things you can do is decrease any unnecessary expenses and avoid taking on new debts for some time. Repay your outstanding credit card dues and limit your credit utilization to improve your CIBIL scores.
Maintain a High Credit Score
Banks will assess your credit repayment abilities through the credit score before giving you an HDFC personal loan. This evaluation is made through your credit history and score. Your CIBIL history will convey your credit card and loan-due repayment information. You get a high credit score if you have paid your dues on time. Your score is the most important factor determining your loan’s approval and the interest rate you get. A high credit score exceeds 750 points and lets you negotiate your preferred interest rate. Then, you can use the HDFC personal loan EMI calculator to estimate how much EMI you need to pay.
Reduce Debt-to-Income Ratio
Your gross monthly debt divided by your gross monthly income is the debt-to-income ratio. For example, if you pay an EMI of Rs. 12,000 for any monthly loan while your income is Rs. 25,000, your debt-to-income ratio will be 0.48 or 48%, which tells the lender that your liabilities are higher than your income. You can bridge this gap by increasing your income, paying off the existing dues, and decreasing the debt-to-income ratio. Boost your HDFC personal loan eligibility by bringing the ratio from 20% to 35%.
Increase Your Income
Banks need to know that you can pay them back successfully each time, and you have a higher chance of getting the loan approved if you have a high income. Increase your income by displaying other income sources, such as bonuses, incentives for good performance, income from passive sources, variable pay, and other investment venues. Assure the lender of your loan repayment capabilities by showing them the multiple sources of income.
Avoid Making Multiple Loan Applications
The lender accesses your credit report whenever you apply for an HDFC personal loan. So, every lender with which you apply for a personal loan accesses your credit report. And hard inquiries into your report make you a credit-hungry customer with high risk. Many lenders will reject your applications on this basis. Several rejections will negatively affect your credit score and hamper your ability to make multiple loans.
Opt for a Long Loan Tenure
Generally, many lenders provide extended tenures to five years so that you can comfortably repay your loans. A long tenure will decrease your monthly EMIs that you previously calculated from the HDFC personal loan EMI calculator. Loan repayment tenures will also solve some of your financial problems since you can budget your income and pay the loan at your own pace. Enhance your personal loan eligibility by repaying your EMIs and choosing longer repayment tenures.
Getting an HDFC personal loan is straightforward if you start working on some points beforehand. That way, you can get the approval instantly whenever you apply for the loan. HDFC Bank also provides paperless personal loans with pocket-friendly installments and great flexibility. You can also check for the EMI using the HDFC personal loan EMI calculator that tells you precisely the amount of EMI you must pay in a specific period. Getting a personal loan is a seamless process that can be completed within a few hours if your credit score, documents, and everything else are in complete order. Therefore, if you need a personal loan, why wait? Apply for an HDFC Bank personal loan today and fulfill your dreams!