{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/personal-loan\/factors-that-determine-whether-your-loan-gets-sanctioned\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/personal-loan\/factors-that-determine-whether-your-loan-gets-sanctioned\/","headline":"Factors That Determine Whether Your Loan Gets Sanctioned","name":"Factors That Determine Whether Your Loan Gets Sanctioned","description":"Securing a loan can feel daunting, especially when you urgently need funds. It could be medical emergencies, home renovations, or any unexpected financial requirement. In any of these scenarios, you may feel stressed about whether your loan application will get sanctioned. The uncertainty surrounding loan approvals can be nerve-wracking. So, what are the factors that...","datePublished":"2024-09-23","dateModified":"2024-09-23","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/vinayak\/#Person","name":"Vinayak","url":"https:\/\/www.indusind.com\/iblogs\/author\/vinayak\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/83880c90630f0d98ec7d461acb74bdf6?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/83880c90630f0d98ec7d461acb74bdf6?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/Factors-That-Determine-Whether-Your-Loan-Gets-Sanctioned.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/Factors-That-Determine-Whether-Your-Loan-Gets-Sanctioned.jpg","height":260,"width":688},"url":"https:\/\/www.indusind.com\/iblogs\/personal-loan\/factors-that-determine-whether-your-loan-gets-sanctioned\/","about":["Personal Loan"],"wordCount":1254,"articleBody":"Securing a loan can feel daunting, especially when you urgently need funds. It could be medical emergencies, home renovations, or any unexpected financial requirement. In any of these scenarios, you may feel stressed about whether your loan application will get sanctioned. The uncertainty surrounding loan approvals can be nerve-wracking.So, what are the factors that determine whether your loan gets sanctioned? Understanding these factors can increase your chances of getting your loan approved.The Loan Sanction Process: What You Need to KnowBefore you know the factors that influence loan approval, it is important to understand the process of loan approval itself. When you apply for a loan, your application undergoes a thorough evaluation to ensure that you meet all the required criteria.The loan sanction process involves several stages. This includes application review, documentation, credit score assessment, and financial background checks. Banks analyse these aspects to determine whether they can approve your loan application.Key Factors That Influence Loan SanctionsHere are factors that influence your loan sanction:1.      Credit Score: Your Financial TrustworthinessOne of the most crucial factors in the loan approval process is your credit score. Lenders view a high credit score as an indicator of reliability. This makes them more likely to sanction your loan. A low credit score can lead to rejection or higher interest rates. To improve your chances, ensure your credit score is above 750. If it is lower, take steps to improve it.2.      Income Stability: Proof of Your Repayment AbilityBanks want to ensure that you have a stable income source before they approve your loan. Your income determines your ability to repay the loan on time. Lenders usually prefer applicants that have been in their current job for a long time. If you are self-employed, the bank will look at the consistency of your earnings over the past few years.3.      Existing Debt: Can You Handle More Credit?Lenders also check your existing debt obligations. Multiple loans or high credit card balances can affect your loan approval process. A high debt-to-income ratio means you might struggle to manage additional financial obligations.To avoid this, try to pay off existing debts or reduce your outstanding balances. This will improve your debt-to-income ratio, further leading to improvement in your chances of getting a loan sanctioned.4.      Loan Amount: Is Your Request Reasonable?The requested amount plays an important role in determining if your loan will get sanctioned or not. Lenders assess whether the loan amount is reasonable based on your income and existing debts. If you are applying for a higher amount, the bank may either reject your application or approve a smaller amount.Using a Personal Loan EMI Calculator from IndusInd Bank can help you determine a reasonable loan amount based on your EMI repayment capacity.5.      Employment Type: Job Security MattersYour employment type also influences the loan sanction process. Salaried individuals with secure jobs are more likely to have their loans approved, as stable employment provides assurance to lenders. It shows you have a steady income and can make timely repayments.6.      Age: Are You Within the Ideal Range?Age is another factor that banks consider when sanctioning loans. Most banks prefer applicants within a certain age range. This range is typically between 21 and 60 years. Younger applicants have the advantage of a longer working life. This increases the likelihood of timely loan repayment.7.      Purpose of the Loan: Is It a Justifiable Need?Lenders often inquire about the purpose of your loan. Loans for well-defined and justifiable purposes are more likely to be sanctioned. These include medical emergencies, home renovations, education, etc.Be transparent about your loan’s purpose during the application process. Provide any necessary documentation to support your claim.Also Read: Unravelling the Link Between Employment and Personal Loan EligibilityConclusionGetting a loan sanctioned does not have to be a stressful experience. To ensure that, understand and address the factors that influence the loan approval process. Maintain a healthy credit score, prove income stability, manage existing debts, among much more. Doing so will improve your chances of getting that much-needed instant personal loan.If you are considering applying for a personal loan, consider IndusInd Bank Personal Loans. Enjoy benefits like 100% online application, instant approval, competitive interest rates, and flexible tenure options ranging from 1 year to 4 years. With easy eligibility terms and our 4-step application process, you can get a Personal Loan from IndusInd Bank in minutes.Ready to take the next step? Apply now for an Instant Personal Loan with IndusInd Bank!Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.Share This:"}