Personal loans are unsecured loans that are granted by banks and other financial institutions to prospective and eligible borrowers agreeing to repay the financial assistance within a specifically defined period of time.
Individuals who have applied for a personal loan are oftentimes in a constant state of doubt and panic regarding the status of their loan application. Here are a few suggestive means through which loan applicants can check their Personal Loan status.
You can check your personal loan status online with the help of your device. Source: Ambit
How to check your Personal Loan status – Online Method
The easiest and the most time-efficient way to track the status of your personal loan status is via online mode.
Almost all banks and lending institutions give the loan applicants the opportunity to check their personal loan status via option available on their official websites. All you need to do is visit the official website of your chosen bank lending institution and then locate the option available to check the loan status. You will be required to enter certain specific details such as:-
- Reference number of your application
- Contact details (Mobile Number)
- Date of birth
Once the verification of the entered details is done, you will be able to access your personal loan application status. There are a few other online means apart from the official websites through which you can check the loan application status.
Check your personal loan status via Net Banking
Personal loan applicants can also track their application via net banking facilities offered by their respective banks or lenders. This method might be all the more convenient for existing customers. One simply needs to log in to their net banking portal or ap, locate the loan related page and then enter the required details to track the current status of their personal loan application.
Check your personal loan status via your registered mobile number
While the loan application is in the initial application stage, the bank/lender requires your mobile number so that they are able to contact you in the near future. Most banks and financial institutions give the opportunity to track personal loan application status via this registered mobile number.
How to track the status of your personal loan application via customer service
All major banks and lending institutions have robust and responsive customer service. This service is not only for account opening queries but can also be utilized to check the status of your personal loan application.
Applicants can contact their bank/lender via their contact number or the email address as given on their official website, and documents. In case you opt to call the customer service, make sure to keep your registered contact details and application reference number closeby before calling the customer service. Once you provide the required details, the executive will be able to inform you about the current status of your personal loan application within minutes.
Considering you decide to contact your bank via email, compose the mail in a very clear and crisp manner with all the necessary details and information such as the reference number of your loan application, date of birth, personal details such as contact number, name, etc. Your bank will most probably get back to you with a status update within 24-48 hours.
Offline method to check your personal loan application status
One of the most basic and most obvious ways to get any sort of update regarding bank and loan associated issues is to physically visit the nearest branch of your respective bank/lender. Despite the growing number of customers opting for various modern means, there are still a large number of customers who prefer offline methods. Whether you are not familiar with modern ways of technology or you simply find it more convenient you can simply visit the bank branch and check your application for your personal loan.
Go to the nearest branch of your chosen bank/lending institute. Carry the necessary documents to avoid multiple trips. The application reference number, identity proof are some of the basic and most important things you should have. Enquire about your issue with a bank representative and they will be delegated to help you and you will be updated on the current standings of your personal loan application.
However, it is arguably a better option to opt for online methods like website portals, net banking facilities, etc in order to avoid unnecessary harassment to both parties and it is also not the most time-efficient method.
One may wonder whether checking your personal loan status is actually of any significance, well it is. In case your personal loan application, unfortunately, gets rejected instead of unknowingly waiting for the loan to be approved you can start looking for other assistance or enquire about it to the bank. Keeping yourself up to date is always beneficial in every case and checking personal loan status with time duly falls in that category.
Factors that affect personal loan applications:
Income of the applicant: The loan application is heavily dependent on the ability to repay the loan amount by the applicant within the specified tenure. This repayment can be assured by the assessment of the applicant’s income. If the person has a higher income or a more stable means of repayment, he is more likely to get financial assistance. Higher amounts of income also imply higher chances to get a better loan amount. However, applicants with lower income are not neglected, lending institutions offer a lot of flexible options of repayment.
Employment history of the applicant:
Most individuals earn their income and maintain their livelihood via employment. The lender will obviously want to assure that the loan lent is repaid, for this, they will need to assess whether the applicant has a steady and stable income source. The employment history will determine the chances of the application being approved, delayed or declined.
For example, if the loan applicant has a steady record of being employed in one particular establishment for a good period of time, usually at least for 24 months, it will indicate that the applicant is reliable and more capable of repayment. Being employed at a highly reputed establishment can also positively affect the loan application.
Repayment of pre-existing debts and credit:
Apart from factors like income and employment that affect one’s personal loan application, other debts that a person owes and already existing credits also play a major role in affecting and impacting the personal loan application. If the applicant is already under pressure of repaying previously borrowed loans and debts from various borrowings and credit cards etc, the chances of the application being accepted for yet another personal loan will diminish drastically.
The lender will determine the fate of the loan application with the help of a ratio that consists of the monthly debt repayment and the income of the applicant. This ratio is known as DTI (debt to income ratio). In most cases, it is ideal if the debt repayment amount remains below 35 per cent of the income. Exceeding this percentage indicates that the personal loan application is more likely to be declined as lenders will consider that the applicant’s repayment ability is not up to mark.
Applicants who are struggling with other factors like low credit score, limited means of income or inconsistent employment status still have a slight chance to acquire the personal loan with the help of collateral as security. Lenders and financial institutions who were otherwise reluctant in processing and accepting the personal loan application due to the inability of repayment will be more inclined to accept the application if there is a certainty that their financial assistance will be repaid in due time or they can seize the collateral instead.
Relationship with the bank/lending institution:
Applicants who are already customers of the bank can use this to their advantage in applying for a personal loan. If the personal loan applicant has a good relationship with the bank, it will increase the chances of the loan being granted as well as getting a good interest rate. The bank will assess and not be as wary in granting the loan, and furthermore, the applicant can also negotiate the interest rates with the bank based on this relationship.
Common reasons for rejection of personal loan applications:
- Low credit score
- Incomplete information on the application
- Incorrect/false information provided to the bank/lender
- Ineligible according to the bank/lender’s eligibility criteria
- Mismatch or inconsistent signatures
- Documents provided are invalid
- Failing or forgetting to take NOC (No Objection Certificate) from previous lenders
Here are a few suggestions to ensure your personal loan application is successful:
Carefully map out the need for the loan: Outline a list for the objectives and motives you need the financial assistance for. Prioritize them according to the urgencies and necessities. Make sure you do not end up borrowing more than you actually require, otherwise you will be repaying interest amounts unnecessarily for a longer period of time.
Do your research and compare the best rates available:
It is essential that one does not apply for a personal loan hastily based on impulse. Enquire amongst the best options and then pick the rates and offers most suitable to your needs and requirements. This will minimize the chances of the application being rejected and also prevent you from tainting your track record of credit score history.
Maintain a decent Credit score:
One of the major reasons why most applications for a personal loan are rejected is that the applicant has a not so credible credit history. Applying for multiple loans, being careless with debt repayment, credit card dues, etc are a few determinants that harm your credit score. A good credit score will help enhance the chances of the personal loan application being granted and the loan being granted.
Assess your repayment ability:
Applicants who are applying must consider the tenure and their capacity to repay the loan before submitting the application for the personal loan. For example, if the applicant is not certain that they will be able to repay the entire amount shortly, they should opt for a longer tenure for the personal loan. Applicants must be highly aware of their repayment capabilities before applying for the personal loan so as to lessen the chances of rejection as well as to retain a good credit score track record.
Compare all additional costs:
Personal loan, apart from the loan repayment and interest rates also carry certain additional costs along in forms of the processing fee, late payment fee, prepayment fee, etc. Compare the fee rates amongst the options available in the market so that you can have a clear picture of the probable expenditures. This will help you in maintaining your finances and ultimately assess your full repayment ability.
Provide accurate and authentic details:
Applicants must provide correct and authentic information and documents in order to ensure the application for the personal loan to be successful. Any false or incorrect input provided can jeopardize your chances of the loan being granted and hamper your track record.
Personal loans are gradually dominating the lending market owing to its flexibility in all the fields that matter to the individuals in need of immediate financial assistance. It does not require any collateral and there is no need to specify the motives for the loan to the lender/financial institution. However, this opportunity to avail financial assistance should not be exploited and individuals should use the loan for objectives within the legal boundaries, any unlawful action can cause great harm and will be faced with dire consequences.
Applying for a personal loan these days is a simpler task. It is the research and pre-application mental exertion that takes a tad bit longer. Most banks/lending institutions have online portals on net banking and easy to follow-through options available on their official websites, through which the individuals looking for financial assistance can apply for a personal loan. However, if you are a traditionalist or simply find the offline method easier then simply visit the nearest branch of the bank and lender you have opted for and contact a bank executive who would help you through the process.