Idol financial situations to have for an approval on a personal loan

Personal loans are the saviours of our financial life. No matter whatever is the situation, they are always there to solve our small, daily routine purposes. From going on a vacation, to an urgent medical attention, whenever we need financial assistance, they are right there.

Personal loan is among the most sought-after loans. They are flexible; however, need certain financial situations from the side of the applicant to get approved. You cannot escape from the basic formalities just because a loan is of a short-term nature.

The certain financial situations that you need to apply for a personal loan and get instant approval is.

A balanced debt-to-income ratio

When you borrow funds, repayment comes as the obvious consequence. For that, it is necessary that your income and expenses should not dominate the income.  If your debts are bigger in size than what you earn, the rejection may happen. It is always advisable to keep the income-outgoing ratio in balance to get a ‘yes’ on any loan product.

Your credit score should be good

If it is bad, then poor payment history should not be consistent

The FinTech market has place for all types of borrowers. Those with good credit score and those with bad credit score can get their share of financial assistance. However, the conditions to fulfil are always there as the lenders have a limit in risk tolerance. For good credit scorers, approval is easier.

In case of poor credit score the past payment record should not be consistently bad as that counts as a careless financial behaviour. Up to an extent, the lending companies are ready to understand that you became the victim of financial vicissitudes.   But if the poor record exists for a long time, it is taken as the result of bad financial habits.

Additional income

It is always idol to show bigger strength on the part of the repayment capacity.  Your income is always an important factor in the eyes of the lender. They love the applicants with the additional income source as this strengthens their security against the missed or delayed payments. A borrower with a strong financial background can pay the loan instalments easily.

Offer letter of a new job with higher salary package

You are serving the notice period in the current company because you have a new job with a higher salary. The offer letter is already there. While applying for the loan, you can attach a (soft) copy of it in the e-mails you send to the lender.

This can be like cherry on the cake. A borrower with the promising financial future always gets the attention and is rewarded with the loan approval.


The above financial situations are the anchors that can bring an easy approval on a personal loan. A smooth approval improves your possibilities of qualifying for other financial products. The reason behind this is the finance companies always prefer the people who win the acceptance easily.