You must have always heard people say that taking a loan is not an easy thing. Tons of paperwork, long wait times, multiple rejections and many many other reasons. Today we are here to tell you that getting a loan - even if you are taking a loan for the first time ever - is no longer such a difficult process.

Say goodbye to long wait times and loads of paperwork by turning to online loan apps provided by companies like Shubh Loans. Your loan application will be processed faster and you will have options to apply for smaller or bigger amounts depending on your need. Everything is done online, except for some paperwork required towards the end of the loan approval process.

While online lenders have made it easier to apply for a loan, getting a loan will depend on your credit-worthiness as an individual. Your credit-worthiness will be assessed by online lenders based on information they collect from you - bank statements, past loan/credit card debt repayment records and your online digital data.

Your chances of getting a loan are vastly higher if your credit-worthiness is high. How do you ensure this? By keeping a track of the following you will be able to get a loan easily:

Your credit score
Most of the lenders in India will look up your credit score before processing your loan application. A credit score maintained by a credit agency - gives an idea as to how trustworthy you have been in the past with all your credit related transactions. If you have taken loans in the past or use credit cards - your repayment history will impact this credit score. Keeping this score healthy requires you to repay loans on time, not take more loans than you can repay and also have a healthy credit mix (of secured and unsecured loans). A good credit score will make it easy to get a loan.

Online lenders also take other factors into consideration before approving a

loan - especially if you are a first time borrower and don’t have a credit history that can be assessed. Digital lenders employ a credit model that takes your income, number of dependants, your existing loan repayments and other criteria into account before approving your loan.

Loan eligibility criteria
All lenders have minimum salary requirements and require you to be of a certain age, with some work experience. They will also need you to submit a set of KYC documents when you apply for a loan. Most lenders will require you to produce address proofs of your current residential address (e.g. rental agreement or gas bill) before disbursing a loan. Keeping these documents ready at your end, will help in faster loan processing.

Make sure you go through the eligibility requirements before applying for a loan, including knowing about the various loan amounts and repayment options that are available.

This will help you in applying to the right lender and decide on the loan amount based on your income and improve your chances of getting a loan. Applying to many lenders at once is not a good idea as it decreases your credit score. So do your research before applying for a loan.

Plan loan requirements
If you apply for a loan, make sure it is an amount that you can repay with your income over time. If not, applying for a loan will put you in a situation where you cannot repay the loan leading to missed EMIs. Your earnings and expenses are also analyzed by lenders before accepting your loan application.

Online lenders are offering loans from as low as Rs. 5000 going up to Rs. 500000, so customers can plan as per their credit requirement. You can also opt for flexible repayment options.

You should also plan to have a mix of personal loans and secured loans (home loans, car loans) so that your overall credit score is healthy.

Track your Credit report
Track your credit report that is available along with your credit score to avoid surprises – like errors in your score or unknown transactions. This will allow you to apply for loans in the future without hitting any roadblocks. In case you are a first-time loan taker, your credit score can be built over time by taking loans and repaying them on time.

Be sure to tie-up all the ends so your credit history is neat. For e.g. If you have pre-closed a loan you should have the loan closure document with you. You should also ensure that you check your credit report, available online to see if the closed loan is showing in your report.

If you have already taken loans make sure that your repayments are timely. Delays and missed payments negatively affect your credit-worthiness and decrease your chances of getting a loan in the future.

Taking a loan can now be hassle-free. Ensure that you are covered on the above aspects and you will not have to stress about finances in the future.