As things in life goes, it’s not unusual or rare for needing an instant loan approval that you need for your endeavor. Be it to kickstart your business, paying mortgage, medical emergency, health emergency, et cetera.
But there are a lot of factors that you have to fulfill first to get the lender to even accept your proposal, starting from things like credit, employment, history. It’s all a complicated business. As such it’s not uncommon for people’s loan proposal to take a long time or even downright rejected by their lenders because they do not meet these qualifications. Thankfully we have tips that you as a prospecting businessman can follow to get your instant loan approval and get your business started immediately.
What You Need for Instant Loan Approval
Income and employment history
The first step in getting your instant loan approval is to know the common fact that bank won’t lend money if you don’t even have an income to begin with. Because after all, bank is still a business. They need to make profit, thus they also need someone with an income.
But what most people do not know is that it’s very important for the lender or banks if their borrowers have a steady employment history instead of a high income.
For example, a person with your average $5,555 salary and three years of employment on that company will be more attractive to banks compared to the average Joe that just got a raise in his new job with even more income.
Regardless of this fact, do not forget to support your loan application with relevant documents such as pay slips, bank books, EPF statements and anything else that the bank or lender requires of you.
Second thing to pay attention to if you want an instant loan approval is the fact that banks and lenders in general, consider your debt obligations or liabilities that you may have so that they can gauge whether or not you will repay the loan or not. The higher your liabilities and obligations are, the less likely that they will approve your loan.
Poor debt servicing ratio is after all one of the most common reason for your loan proposal to be rejected outright.
If you’re looking to use the loan that you’ll get to finance a home or something of similar value, a bank will look into the market value of the home or thing that you want to buy first as to gauge whether the amount the borrowers is asking justified or not, and as a result results in a factor on which you get your instant loan approval or not.
A bank representative will study the actual market value of the property, so there will be a high chance that the borrowers will not get the full amount that they’re asking, and thus relegated to shoulder the rest of the cost themselves.
Age and loan tenure
Using home loan as another example, a tenure involved with home loan will most likely lasts for 30 years or so, as such it would be extremely hard to get a loan approved if the borrowers age is somewhere near 60 years old. A general rule of thumb as to what bank finds most attractive are the age between 30 and 50 years old considering their financial stability.
It’s not a secret anymore that a borrowers’ credit history is one of the most important factors in bank deciding to approve your loan or not. The better is their credit history, the faster and more likely it is for them to be approved.
Using just a simple credit check, a lender can dig up a substantial amount of information about your payment history.
Not only that, but banks will also see how well borrowers about paying their existing owes. If someone misses a lot of payments consistently, it will undoubtedly reflect badly on their credit score, be it car bills, car loan, or even electricity bills.
Savings and assets
Continuing with things to pay attention to get your instant loan approval is to recognize that it’s not uncommon for borrowers to go default on their payments, thus lenders often time will look into other way to get their money back, or to put it simply, a collateral.
If the borrowers own assets and savings prepared beforehand, it will help tremendously into a lender’s decision as well as how fast they will approve the borrowers’ application.
Timings of application
While it may seem not that important in getting an instant loan approval, the timing of your application is just as important as your credit score on whether you get it or not. Lenders tend to avoid candidates with multiple loan applications done in a short period of time. Lenders will think that they’re desperate and risky, and as a result will factor in their decision to reject the application.
Relationship with the lender
While it’s not impossible to get a loan from a bank they just become a client to, it’s near on impossible because they do not have a trust in them yet. On the other hand, applying for a loan to a bank that already have an established relationship will make sure that they get approved immediately because they already have the trust, and even history necessary for them.
To summarize all the point above, it’s important for the borrower to have a good credit, good relationship with the bank, to not ridded in debt, as well as having an item of value and savings. If a borrower has these qualities above, it’s not an impossible feat to have an instant loan approval as soon as they apply for it.
And that is all that we can tell you about the things you should pay attention to get an instant loan approval. Every thing in life is build upon trust, as such it shouldn’t come as a surprise that the same also applies to getting an instant approval loan.
Last words, thank you for taking your time to read our article about this topic of instant loan approval. That is all from us, we hope that this article helps you in your endeavor of taking loan and having it approved instantly in the future. We hope to see you again soon with another article regarding cash loans and financial advice in general. See you!