7 Tips to Getting Your P2P Loan Approved
Applying for a loan on a P2P platform like Blend PH can be a challenge for some, even with the simple application process and minimal documentary requirements. To guide you even further, we have compiled the top seven (7) tips to help you in getting your peer-to-peer loan application approved without any hassles.
- Clearly define what you need the loan for
Before getting a loan, you need to recognize what you’ll need the money for. Is it for an emergency expense? Is it for a major purchase? Is it for a home renovation? Or maybe you’re planning to start a small business? There are different loan products to suit every need. There would be different terms, interest rates, and repayment schedules for each so it’s best to know exactly what loan to apply for. Doing so will not only help you decide on the right amount to apply for but would also let you manage your repayment plan in the future in case your loan gets approved.
- Always read the fine print
As with everything in life, you need to read the fine print. Don’t go ahead with applying for a loan just because you saw an enticing ad on Facebook or Google. Go into every detail on the P2P loan provider’s website, read their FAQs, or find comprehensive guides on their blogs. Inquire or ask questions over the phone if you don’t find the details online. Do as much research as possible and read reviews or ask people who have tried your chosen platform on what experiences they had when they borrowed money. Remember, taking out a loan is a commitment, so always do your homework and make sure you understand every term related to what you’re getting yourself into.
- Complete all the documents required
The main trouble for loan applicants is that, sometimes, even when the requirements are clearly itemized on the provider’s website, they still fail to produce what’s needed because of incomplete or unsatisfactory documents. This is one of the most common reasons for non-approval. It always pays to submit the complete papers and request for the ones you don’t have yet before going ahead and applying for a P2P loan. This will ensure faster verification and approval for your application.
- Be transparent with the information you present
Don’t hide anything from your P2P lender or provider. Because your financial information will be verified from the time you sign up for an account leading to when you submit your loan application, it will be best to be honest with what information you present. Providing only the complete and most accurate information about yourself would, more often than not, speed up the approval of your loan application.
- Stay in your job
Sticking with your employer until your loan is fully paid is probably best. Even if, for instance, you’re planning to use the loan for starting a business, changing your employment or income status can cause delays or affect the application process negatively. P2P platforms approve your loan application based on the personal and financial information you present, so quitting your job to become self-employed will make them re-evaluate your capability to make the repayments.
- Check your existing debt
While you don’t need a zero balance to get your P2P loan approved, your application will be evaluated based on your debt-to-income ratio. This means that if you already have outstanding debt somewhere else, you automatically are a high-risk borrower so you can be offered a lower amount or a higher interest rate. Or worse, there’s a possibility that your request will be turned down. It will be best to pay your existing debts first before going into another loan.
- Know what you can pay for
P2P lenders, or any other formal lenders for that matter, would fund loans based on the amount that a borrower applies for. But sometimes, people can’t help but apply for loan amounts that are more than what they actually need because the opportunity is already there and because they’re almost completely sure that their application will get funded. But rather than apply for a bigger amount because you know your application will be approved, you should be smart enough to only loan the exact amount you actually need. You need to know what you can afford and keep your repayment expenses within your actual means. This way, you’re not carrying the additional burden of paying off a bigger sum when in fact you only needed little during the time you applied for a loan.
In the end, getting your P2P loan approved involves setting realistic goals and sticking to them. Register now at https://blend.ph and get the funding you need immediately. Just keep these practical tips in mind and you’ll be on your way to getting a loan approval on our platform in no time.