One of the best things about personal loans is that they can be used in several ways, whether it is a wedding, financing a holiday trip, purchasing a home, a new car, etc. This loan’s unsecured nature allows you to get the necessary financing without providing any collateral as security. A personal loan is easy to obtain and requires less paperwork. This makes it an ideal choice for immediate financing. Numerous financial institutions offer an attractive interest rate for personal loans. Do your research and choose a lender that offers loans and benefits based on your requirements. Let’s have a look at some ways that can help you choose the right loan.
Rate of Interest on Loan
When you plan to get a personal loan, you need to research the financial markets for better deals on loans. The goal is to find a loan with a low interest rate. However, do not get fooled by the attractive deals that some lenders might offer you; always look at the total amount you will be paid by the time you are done with the loan. Hence, it would help compare the lending options and the interest rates before finalizing a loan.
Loan Repayment Flexibility
Make sure to look up the loan repayment terms provided by the lender. Most loans are associated with part payment and prepayment, where you can repay the loan before its tenure. Some banks charge you a small fee for such types of repayments. Hence, it is important to ask the bank or financial institution about the repayment terms for a personal loan.
EMI Repayment Affordability
While a personal loan is quite helpful when it comes to fulfilling your financial requirements, keep in mind that it is still a debt that has to be repaid at the end of the tenure. Hence, you need to make sure that you can afford to repay the loan amount or you might end defaulting on the loan and directly harm your credit score. Take the help of a loan EMI calculator before taking out a loan. The calculator should factor in different factors like interest rate, loan tenure, processing fees, and you can get an estimate of the loan amount that has to be paid every month towards the loan.
Applicable Fees & Charges
The fees applicable on a personal loan may vary from one lender to another. Before you avail loan, compare fees and other charges like loan cancellation and service tax fees. Check with the bank’s late repayment charges and loan processing fees. Usually, the fee charges range between 1-3 percent on loan.
Explore other Lending Options
If it is your first time availing of a loan, you might be tempted to take the first offer presented to you. It would help if you looked at other possibilities and options in the financial market. Avoid making any hasty decisions and go through the loan terms and conditions carefully. Numerous loan options can offer you a high loan amount to solve all your financial issues with ease.
Loan Eligibility Criteria
The following are the eligibility criteria that need to be fulfilled to qualify for a loan.
- It would help if you were an Indian resident to be eligible for an instant personal loan.
- An eligible applicant must be between the ages of 23 and 57 years
- The applicant must be employed at a public/ private company or an MNC( Multi-national Company)
- The applicant’s minimum salary requirements are based on the city of residence.
The following are a list of documents required for a loan
- KYC documents like the Aadhaar Card, PAN Card, Passport, Driving license, Voter’s ID
- The bank account statements of the last 3 months
- Passport-size photographs
Maintain a Good CIBIL Score
Your CIBIL score is a significant number that decides whether lenders will accept your loan application or not. Whenever you apply for a loan, the lender will check on a lot of your personal documents, including your credit history. They will check through your CIBIL score to identify your ability to make timely loan repayments. This concludes that having a good credit score is crucial to avail credit, including any form of a loan. Hence, it is advisable to keep your CIBIL score on track since the beginning of the year to help increase the chances of getting your loan approved easily to have a more detailed understanding of several aspects of the score.
Now that you are well aware of choosing the right Personal Loan, you can apply for an instant loan for your financial requirements. Make sure that you compare the offers from different lenders and choose the best as per your requirements.