The most common reasons for rejection include a low credit score or bad credit history, a high debt-to-income ratio, unstable employment history, too low of income for the desired loan amount, or missing important information or paperwork within your application.
HDFC Bank customers can get Personal Loans with minimal or no documentation. In fact, if they are pre- approved for a Personal Loan, they can easily apply for it. Lower interest rates: Interest rates on Personal Loans are lower than other sources.
The easiest loans to get approved for would probably be payday loans, car title loans, pawnshop loans, and personal installment loans. These are all short-term cash solutions for bad credit borrowers in need. Many of these options are designed to help borrowers who need fast cash in times of need.
Current Income and Expenses
Even if you make a substantial amount of money, lenders look at how much debt you're responsible for on things like credit cards, car loans and mortgages. The lender might also consider your regular monthly bills, alimony and child support.
One of the best reasons to get a personal loan is to consolidate other existing debts. Let's say you have a few existing debts to your name—student loans, credit card debt, etc. —and are having trouble making payments. A debt consolidation loan is a type of personal loan that can yield two core benefits.
In most cases, individuals are eligible for a personal loan amount of up to 30 times their monthly income. Additionally, to minimise the risk of default, lenders keep the EMIs of the loan to about 45-60% of your monthly income.
How long do I have to be employed to get a personal loan? Generally, you need to be over your probation period at your job to qualify for a personal loan — around three to six months. However, some lenders are willing to offer you financing even if you haven't started that new job yet.
Can you get a loan if you're unemployed? An unemployed person can apply for a loan but will still need to earn an eligible form of income or have suitable income-earning assets to repay the loan.
It's possible to get a loan if you're working a temporary job. However, some lenders might not be willing to work with you unless you have another job lined up or another source of income. It can help if you've consistently worked in the same field for at least a few years.
You will likely need a credit score of at least 660 for a $20,000 personal loan. Most lenders that offer personal loans of $20,000 or more require fair credit or better for approval, along with enough income to afford the monthly payments.
You will likely need a credit score of at least 580 for a $3,000 personal loan. Most lenders that offer personal loans of $3,000 or more require bad credit or better for approval, along with enough income to afford the monthly payments.
While personal loans can be a good option for consolidating debt, covering a financial emergency or paying excessive medical bills, they aren't typically allowed as a mortgage down payment. Instead, exploring loans with low down payment requirements or waiting until you've built up more savings may be your best bet.
Lying on a loan application may seem harmless at first — after all, a lender may not even check your inflated income claim or current employment status. However, intentionally lying on a personal loan application is considered fraud, and it can have real consequences.
Lenders offer two types of consumer loans – secured and unsecured – that are based on the amount of risk both parties are willing to take. Secured loans mean the borrower has put up collateral to back the promise that the loan will be repaid.
An unsecured loan is a loan that doesn't require any type of collateral. Instead of relying on a borrower's assets as security, lenders approve unsecured loans based on a borrower's creditworthiness. Examples of unsecured loans include personal loans, student loans, and credit cards.
Yes, you can get a personal loan with a credit score of 550. You could consider getting a secured personal loan, applying for an unsecured personal loan with a co-signer, borrowing from family and friends, and checking with local credit unions which usually have a lower requirement over credit score.
If you don't have proof of income, you could ask someone with a reliable earnings history and good credit to co-sign with you. Be aware, though – co-signing on a loan program isn't just vouching for you. The co-signer is putting his or her name on the loan.