Bank Loan Approval Tips: Getting a loan from the bank will no longer be difficult. If your application is being rejected repeatedly, make some changes to your financial habits. From improving your CIBIL score to properly managing old debts, these 5 easy methods will guarantee your loan approval. Learn how to improve your profile.

Bank Loan Approval Tips: Borrowing money from the bank has become a necessity these days, but sometimes banks outright reject our applications. If you also want money for a house, car, or personal needs, and the bank is repeatedly rejecting your application, the problem might not be with your income but with your 'financial record'. Before lending money to anyone, the bank checks their creditworthiness. Make these 5 changes immediately to get your loan application approved 'superfast'.

First, improve your CIBIL score

The first impression a bank gets of you is based on your credit score. This score shows how reliable you have been in past transactions. If your score is below 700, the bank considers you a risky customer. Check your score before applying for a loan and try to get it close to 750.

Be careful with EMI payments

If you have any outstanding loans, never delay in paying your installments (EMI). Even a one-day delay in installments puts a black mark on your record. Paying on time proves that you are responsible, and banks easily lend money to such people.

Control your credit card usage

Many people spend their entire credit card limit, which is a bad habit. The bank considers this a sign of 'financial distress'. The rule is that you should only spend 30% of your total limit. Pay your bills on time and use your card very wisely.

Pay off small debts first

If you already have many outstanding loans, the bank will hesitate to give you a new loan. The bank wonders how you will manage to pay so many installments. It's best to clear your existing smaller loans before applying for a large loan to improve your credit profile.

Ask for only what you can repay.

Often, people request loans far exceeding their income. The bank determines your monthly installment capacity based on your salary or income. Requesting a loan larger than your means will almost certainly lead to rejection. Therefore, always choose a loan amount that aligns with your earnings and eligibility.

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