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However, there are certain things to be aware of when you apply for a personal loan, either online or physically at the bank or financial institution. The personal loan lenders have certain eligibility criteria in order to accept your loan application. In case you are in a situation of a time crunch, follow the below-mentioned ways to get faster approval on your personal loan in Dubai.
Before you decide to take up a personal loan, make sure you have thoroughly assessed and evaluated your needs. You should be well aware of the amount of the personal loan you need along with the interest rate charged on that loan by the lender. This helps in speeding up the procedure of loan planning.
Most of the lenders have pre-specified eligibility requirements for obtaining a personal loan in Dubai, you need to meet these requirements in order to be eligible to apply for the loan. It is possible that you may have a good credit rating along with a stable income, yet you may fail to meet these eligibility requirements.
Before you start the procedure of applying for a loan, you should be well aware of the eligibility requirements. Below mentioned are the few criteria that the bank or financial institution considers while approving your personal loan in Dubai:
When the bank or the financial institution reviews your application for a personal loan in Dubai, it checks your credit history with the help of your credit report. The better your credit history, the better are the chances of your loan getting approved. You should keep a constant check on your credit history, and look out in case of any late payments or defaults.
If you have had a recent history of unpaid fees or late payments, you should work on your credit history before applying for a loan. Good credit history not only increases the chances of your loan being approved but also gets you attractive rates for your loan.
One can improve credit history by repaying the outstanding debts on time regularly and avoid missing any payments. The lender of a personal loan will first check your recent history in order to assess your loan application. Therefore, keeping a good record now helps you in the future if you ever need a personal loan.
Your credit history and credit Score are related to each other. Your credit score is determined using your credit history as a part of the rest of the information. It is possible that you might have a very good credit history, but not an equally good credit score.
You should be updated regarding your credit score. Once you are aware of the credit score you hold, you should go on and ask your financial institution or the bank about the rates and terms offered to the applicants as per their credit score. If you feel a better credit score will increase the chances of approval on your personal loan in Dubai, then take some time to review your report and find the factor that is affecting your credit score and try to improve on it.
Income stability and living situations are one of the most important factors when the lender reviews your application. When your application is checked, the lenders confirm the duration of your residence at your current location. The longer the duration of your employment and residence is, the higher are the chances of getting approval for your personal loan in Dubai.
The most important factor of your application is your loan repayment capacity. Even if you have met all the eligibility requirements, and hold a good credit report and score, the lender will still factor in your source of repayment of the loan.
The lender will calculate your income against your expenses in order to determine your ability for the repayment of the loan. The higher your income is against your expenses, the higher are the chances of getting approval on your personal loan in Dubai.
The first step towards a lender loaning you money is trust. If they trust you with honoring all the terms of the loan, they will be ready to loan you funds. The first step towards doing so is ensuring you have been completely transparent with the information you have shared.
Most of us think that if we apply for a personal loan with multiple lenders, the chances of getting personal loan increases. However, this is not true. When you submit an application for a personal loan, the lenders while reviewing your application dig out information about you. If they end up finding your multiple applications, they may think you have some hidden motive or that you cannot manage your expenses properly. Hence, this reduces the chances of you getting approved for the loan.
The reasons for rejecting a loan application vary from lenders to lenders, however, one should be careful of all the possible scenarios.
There are numerous lenders in the market. The majority of these lenders are reputable institutions or banks, however, there are some scammers who have the motive of taking advantage of innocent people. It is important to do a thorough check on your lender before applying for a personal loan in Dubai.
Summing it Up!
Even though the application for a personal loan in Dubai seems easy, it is not a child’s play. Ideally, not all applications are approved, some applications may get rejected.