Have you ever suffered a loan rejection? Do you know the reasons behind this rejection, if yes, and then do you want to improve your odds of your loan application approval? Before heading to the reasons, you must know how the loan processing works, steps involved in loan application that will make you eligible for re-application with better chances of approval. Generally, personal loans are unsecured type of loans that doesn’t require any security against them. You can “Apply For Personal Loan“ from various lending institutions.

There is no standard set of documents that each lender asks for as it varies from lender to lender. Typically, you will need to submit these documents such as PAN card, address proof, last three months salary slips, latest bank statement etc. However, personal loans are the convenient form of debt but getting an approval could be challenging sometimes. There is a set of criteria that lender will ask for while considering your loan application. Let us have a look on some ways to fix your loan eligibility.

→ Review the reasons of loan rejection: To fix any problem, you must know the reasons behind it. There could be number of reasons for your loan rejection. Some of them may be low monthly income, bad credit score, inaccurate information, unstable profession, existing loans, number of loan enquiries etc. the lender will not take such things positively and may reject your loan application.

→ Improve on credit score: A credit score helps the lender to determine your creditworthiness. If you have a high score of 750 or more, you have greater chances to get your loan approved and you may also get an opportunity to secure a loan on low rate of interest. So it is crucial to build a strong credit history. To do so, it is important to make timely payments on your dues, credit card bills and existing loan repayments.

→ Maintain your debt-to-income ratio: This is the ratio that determines your debts with respect to your income. A higher ratio will reflect that you have too many debts and unable to repay your loan. Therefore, to maintain your ratio low, you must repay the existing debts before applying for new loan. In result, lender will be risk free to provide you personal loan at competitive interest rates.

→ Compare and borrow: Every loan enquiry adds up to your credit report and affects your score adversely. So, do a proper research about lender and compare the loan products online. Every lender has different set of eligibility criteria and rate of interest. You must choose the lender that caters your needs and provides you quick and convenient personal loan.

→ Check your documents before applying: Before you “Apply For Personal Loan Online“ or offline, check your all documents in place. Do not provide any inaccurate information to comply with lender’s terms to face any rejection. Never make a rush before re-applying any loan.

At the end, do not get disheartened, if you get your personal loan rejected. Just follow the above mentioned steps to improve your chances of loan approval.

Sometimes situations may arrive when your savings are not enough to cover your emergencies because spending all your savings in a single time is not a wise idea as it increases your potential financial risks in the long run and left you with no financial security to cover you back. There might be a solution for such situation where money is needed urgently apart from your monthly budget. In such case, borrowing will be the only solution left for you but what makes sense is choosing a right lender and perfect type of loan which has easy processing with simple terms. “Personal Loan“ is such a financial tool where you get access to funds without pledging any security at budget-friendly interest rates.

With the revolution in technology with the lending sector, you can now secure a Personal Loan in much easier way. You can easily take a personal loan by visiting the websites of online lenders like ShubhBank or you can also pay a visit for offline loan. To apply for the loan, you just need to fill the loan application form by providing basic information what may lender ask you for. The online processing is fast and your loan gets approved in a shortest possible time. There are few stages of personal loan processing which we have listed below:

→ Loan Application: To start a loan processing, you have to fill a loan application form which can be found easily on the online platform of various lenders. The application form should be duly filled with all the genuine information. The form includes the section to provide your personal details such as name, address, age, employer with whom you are working and contact details such as email address or phone number.

→ Submission of documents: Once you complete the loan application form, lending institution will take the loan process ahead and will ask for the KYC documents to get submitted. A lender needs these documents of loan borrower to determine and verify the identity, age and income. These documents include Identity proof, residence proof, income proof etc.

→ Document verification: The verification process starts once you submit all your required documents with loan application form to the lender. Firstly, the lender will check the credit score when you “Apply For Personal Loan“ and if you meet the criteria, the lender will move ahead to verify your provided documents. The primary verification includes your identity and address that you have filled in application form, then your income details are verified by cross checking with your employer or bank details. When lender finds your documents correct and you meet the eligibility criteria, you will be approved for loan.

→ Disbursal: Here, the lender drafts a loan agreement for you. It may include loan terms and conditions, the interest rate and tenure for which you are getting approved. If you are satisfied with all the terms and conditions, you need to sign the loan agreement. After that the loan money will get disbursed directly to your bank account. It is always advised to go through the terms and conditions carefully in the agreement before signing it.

Loans can be a savior during an emergency and they don’t have to trap you in debt over a period of time, if you manage your finances well. Even, you can get tax benefits from certain kind of loans. It is true that you could get some great tax deals on your loans. As per the income tax, 1961, government has levied some tax benefits that have been provided been provided to the borrowers to reduce the burden of tax repayment. Let’s have a look on some common loan options that offer tax benefits.

Home Loan: It is one of the biggest loan liabilities that a borrower can avail. The loan quantum and tenure can be high on “Home Loan“ but the tax benefits that a customer reaps on it are pretty good too. It can benefit an individual in two ways. Firstly, the amount paid towards the principal qualifies a tax deduction under Section 80C of the Income Tax Act while another benefit comes from a deduction in the amount paid as interest on the loan. If one has his/her spouse as co-borrower, the deduction can be claimed by each of you. The tax benefits on home loan can only be availed after the construction is completed.If you are planning to sell your home within five years from the date of taking loan then say goodbye to tax benefits.

Study Loan: The government has put various measures to promote higher education in youth and people have become aware to venture out of the country to study. Nowadays, the cost of professional courses such as medical and engineering is still sky-rocketing in India as well as abroad. This is when study loans come in handy as they pave the way to your future. To enjoy the perks of tax benefits on your Study Loan, the loan should be borrowed from scheduled financial institution. The tax benefits to the borrower availing an education loan for pursuing the higher studies come under the Section 80E of the Income Tax Act. This advantage can be availed for maximum of eight years or on the tenure, whichever is applicable.

Personal Loan: It is a type of unsecured loan that offers a plethora of requirements. This loan is a lot easier to obtain without stating the purpose of borrowing it. The most common reason behind applying a “Personal Loan“ is medical emergency, debt consolidation, travelling, higher education and many more. Most of the people tend to miss out the tax advantages on it as not many know this benefit of loan. Generally, the principal amount and charges of interest paid towards loan cannot be deducted for tax exemptions but you can claim the benefits if you are using the borrowed amount for home renovation.

Now you have a guide that if the loans are handled responsibly, they can help you plan your finances in a better way. The tax benefits are the fantastic offers provided on Home Loan, Study Loan and Personal Loan. If you are looking for a loan from above mentioned categories, just give them a shot.