ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Get Approved for a Bank Loan Quickly

Updated on April 18, 2018
srirad0675 profile image

Srikanth is passionate about helping people improve their quality of life.

Getting a Loan is Simple

People are anxious unnecessarily when they approach a bank for a loan. They are intimidated by loan approval process in bank. This is really unnecessary. The advancement in technology has made it possible to apply for a loan simple. However there are some things you need to remember while applying for a bank loan.

Do you need a loan?

See results

Tips to Get Loan Approved Quickly

Here are some tips on how to get your bank loan approved quickly.

If You Want a Loan, Apply

Most of the people fail to get a loan just because they do not ask for it. Please remember, banks exit to provide loans. They get your interest and you get money when it is necessary for you; it is a win-win situation. So if you need money, you definitely need not hesitate to approach a bank for a loan.

Maintain a Good Credit Score

Banks and other financial institutions prefer customers with clean financial habits. Your credit score is a reflection of your financial health. Whether you pay your EMIs on time or default can be easily checked through your credit report, which is maintained by different bureaus. If your credit rating is high, your loan will be approved quickly.

Read Terms and Conditions

It is advisable to take loan from a bank recognized by the government. Also check the interest rates and other terms before signing on the dotted line. Because once you sign on the dotted line, you are committing yourself to the bank's terms and conditions. Loan officers will be there to help you; but it is always advisable to read through the terms and conditions.

Check Eligibility

In reviewing your credit report and credit score, and applying for a loan, one of the factors that will have an impact on your credit score is the number of searches, or inquiries there are on your credit report.

Too many of these searches will decrease your credit score, which is definitely not good. Although some credit bureaus will now allow similar searches within a 24 to 48 hour period. Which means if you are applying for the same type of loan and apply at a few lenders, all the searches are lumped together because the bureau knows you are shopping around.

In order to find out if you stand a chance at getting a loan without applying for the loan I suggest that you use eligibility calculators. These calculators ask various information from you and will check your eligibility without affecting your credit score, and without placing a search on your credit report.

Take Loan from a Bank Recognized by the Government

Source

This book helps you raise money for your business. Author Boomy Tokan has helped businesses of various kinds raise the money they need.

Find the Right Bank

If you are taking a personal loan, you may approach any reputable bank. However, if you are taking a loan for your business, it is advisable to approach a bank that is specialized in providing financial assistance to businesses in your industry.

Source of Income

Your loan is more likely to be approved if you have a regular source of income. Banks, all over the world, verify the source of income of the applicant. After all, they would want their loans repaid.

Documentation

Preparedness is the key to success while going for a loan. You need to convince the bank that your loan would be a low-risk proposition to them. If the bank is convinced, your job is done. It is very important to have all the relevant documents ready.

Covering Letter

If you are applying as an individual, you may need filled-in loan application, proofs of identity and address, and proof of income. If you are applying for your business, you may need your business' financial statements along with the loan application. It is important to have a covering letter.

Let Your Documents Be Neat and Legible

It is advisable to ensure that your documents are neat and legible. Be well organized. This go a long way in avoiding confusion. Type the documents where ever possible. Hand written stuff looks unprofessional.

This informative book helps you identify what lending channel, what loan product, and what price point truly fits your need.

Be Prepared for Questions

It is very important to be well-informed. Anticipate questions and be ready with your responses. You need to exude confidence when you interact with the bank's representative. You are not going there as a beggar. It is a professional transaction for mutual benefit.

Usual Questions

You can expect usual questions like "How much money do you need?", "How do you intend to invest it?", "How do you intend to repay?", "What will you do if your loan is not approved?", etc. It is definitely a good idea to be prepared.

Be Confident and Humble

Never ask for a loan in an apologetic tone. Remove negativity and be confident. If you lack confidence, the bank will have doubts on your ability to repay the loan. This may result in rejection.

Speak Confidently

You need to present yourself as someone who can repay the loan. Speak confidently about your business. Explain how you intend to invest the money profitably. Carry brochures, ads and relevant material about your business while visiting the bank.

Avoid Bragging

While it is important to be confident, it is equally important to avoid bragging. You need to be confident and humble. Bankers do not appreciate unsubstantiated, loud and broad statements. They need data. Avoid including false information in your application. Bankers verify all the information you would have provided.

Do Not Push

Submit the documents and wait for the banks turn around time. Do not push the officers for quick approval. Avoid bribing your way through. It is advisable to have a referral. The person should have a good standing in the society. It will be great if the person referring you is a good customer of the bank.

Speaking About Risks

While discussing your loan, bankers may ask you about the risks involved in your business. They would want to know how you intend to manage them. Never tell them that there are no risks.

Speak About Your Plan to Handle Risks

This would be a lie because any business will have an element of risk. If you tell that you do not have any plans to handle risks, your loan application is more likely to be rejected. You need to have a risk management strategy in place and you need to communicate the same to the bank.

You Can Get Loan

Getting a loan is a challenge. However, if you remember the above-mentioned tips, getting a loan will be a cake walk.

Banks Offer an Array of Various Retail Loan Products

Money
Money

Know What to Expect

Have you ever applied for a loan?

See results

Especially if you're over 40, shortening the term of your loan to pay it off sooner could make you mortgage-free in retirement.

— Barbara Corcoran

© 2013 Srikanth R

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)