Gone are the days when business owners had to struggle for quick loans, go through long processes, and manage lengthy paperwork. Fortunately, the right tricks and applying for a business loan online can help you achieve quick approvals and disbursement of funds in no time.
In this guide, we’ll share some of the secrets of how you can get instant loan approvals when you apply for one online.
- Maintain a Good CIBIL Score
CIBIL, or credit score, is the score used by lenders to determine the creditworthiness of the borrower. It ranges from 300-900 and is one of the most important factors when applying for a loan online. Applicants must maintain a good credit score (typically more than 750) to obtain instant loan approvals at low interest rates and favourable terms and conditions. To improve your credit score, here’s what you need to do:
- Don’t apply for too many loans in a short period.
- Pay off your loan EMIs and credit card bills in time.
- Maintain a low credit utilisation ratio and use less than 30% of the credit limit.
If your credit score is low, try to improve it by taking certain measures before you proceed with the business loan apply process.
- Choose the Right Lender
It is advisable not to choose a platform on the basis of hype. Take your time and do your research to opt for an online app that is safe to use, user-friendly and offers benefits like flexible repayment options, collateral-free loans, a quick approval process and charges no hidden fees. The online lender must be trustworthy and reliable.
- Keep Your Business Financials Ready
Whenever you apply for a business loan, it is essential that you be prepared with the necessary documents and keep them updated. Some of them include:
- Profit and loss statements
- Bank statements (at least for the last 6 months)
- GST and income tax returns
- Business registration documents
Submitting documents that are complete and accurate increases your chances of getting instant loan approval.
- Apply for the Right Loan Amount
Only apply for an amount that you actually need. Avoid overborrowing, as it can lead to overburdening yourself when it comes to repayment and underborrowing to avoid insufficiency of funds. A realistic business loan amount helps you get quick loan approvals and pay EMIs comfortably.
- Opt for a Pre-Approved Loan Offer
Many online platforms provide pre-approved loan offers, allowing borrowers to check, and if it aligns with their requirements and they qualify for the same, they can simply make an application via these offers and get instant approvals with minimal documentation.
- Be Transparent
Make sure to maintain transparency and provide accurate information about your business to avoid unnecessary delays and rejections. Also, it ensures the maintenance of a strong business profile by keeping proper financial records, avoiding frequent changes in the business, and showing steady growth. This will significantly improve your chances of getting a quick business loan online.
- Apply Online for Faster Processing
To avoid waiting for days, going through long processes and managing lengthy paperwork, you can conveniently apply for a loan online from the comfort of your home at any time without worrying about bank holidays and weekends.
Final Thoughts
Getting instant loan approval for business requires strategic planning, but it’s not as difficult as it sounds if you maintain the right documents and have a strong credit history and business profile. With a reliable business loan online platform like Bajaj Finserv, you can choose your repayment period, opt for a collateral-free loan and don’t have to worry about hidden charges.
By following the above tricks, you can increase your chances of getting instant loan approvals and achieve your business goals.
