8 Common Reasons for Applying for a Personal Loan
As more "online instant approval loans", "no-income verification loans" and "small loans" are introduced...
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If you are facing a major decision, such as studying abroad, moving house or home renovation, a personal loan could be the solution for you. But if the personal loan application is not approved, it will disrupt your plan, and can even put a stop to your dreams. By following the 4 tips below, you can drastically increase your chance of get loan approval.
The success rate of personal loan approval holds a positive correlation to your credit rating. The higher the rating, the more likely your application will be approved. Financial institutions will determine your ability to fulfill your repayment responsibility based on your credit record, thus, maintaining a good credit record is crucial to get approval.
While applying for a loan, you should opt for a reasonable amount based on your actual financial needs and repayment ability, rather than just going for the maximum. Financial institutions will have looser requirements when dealing with lower loan amounts.
If the loan amount is large and you choose a shorter repayment period, monthly repayment amount would rise accordingly. The lender may worry your ability to repay such a large amount each month and bear a risk of not receiving the full repayment on time.
Therefore, extending the repayment period to adjust for an affordable repayment amount may lower the worry of and risk borne by the financial institutions and thus make the approval easier. In general, financial institutions tends to approve a mini loan with a smaller loan amount.
When lenders approve loans, they need to bear the risk of losing money if the borrower cannot repay. If the borrower does not own any collaterals or certifications, their repayment ability can be questioned, lessening the chance of loan approval. However, providing sufficient supporting documents to prove your repayment ability can boost lender confidence, and also increase the success rate of loan approval.
To get approval more easily, you can use Promise's loan calculator to calculate the loan repayment amount and repayment period to set an appropriate loan and repayment amount. Moreover, the required documents of our products are simple, with no income proof required#.
You can apply for a loan via our online platform for a preliminary approval - a quicker way to get the money that can fund your dreams and plans.
