Planning on applying for your first personal loan? Confused and overwhelmed by all the lucrative offers and heavy finance jargon used in the newspapers and online? Well, you must do proper due diligence before applying for a personal loan.
So, in a bit to help you make an informed decision, lets’ look at some of the important aspects of applying for a personal loan for the first time and discuss some financial practices to help you make the most of the funds you borrow.
Personal Loan Tips
Do you need a personal loan?
Well, this should be the first question you ask yourself before applying for one. Often we get carried away when we receive a pre-approved offer from the bank or an offer on a lucrative personal loan interest rate. However, you need to closely evaluate it, before jumping in to take it. To be clear, a loan is money you borrow that is not yours. You need to repay the amount you borrow with some interest within a certain time frame. You must make an informed decision before applying for a personal loan.
How much money to borrow?
Many times, people apply for a personal loan for expenses like an international holiday or funding expenses like a wedding or fees for higher education courses. Other times, people apply for a personal loan when in a financial emergency like a medical emergency, that requires immediate funds being time-sensitive. Many times, the amount you need may be very different from how much you can afford. Many personal loan calculators are available online. You can these financial tools to calculate the EMI pay-outs you will need to make basis the amount you borrow, giving you a realistic sense of what your debt may look like.
Check your CIBIL crore
Your CIBIL score plays an important role in the time taken for loan approval. A high CIBIL score certainly helps in expediting the entire loan application process. Lenders take your CIBIL score also known as Credit score seriously before disbursing the loan. It is necessary to have a credit score of at least 750 to be able to apply for a loan amount of your choice and a chance of availing it at a competitive interest rate. Some lenders may even waive off the processing and pre-payment charges for those with a high CIBIL score.
What to remember when choosing your loan
- The convenience of the loan application process
Before applying for a personal loan, choose lenders that offer you hassle-free loans with an easy application process. Lenders like Bajaj Finserv offer 100% online disbursal and a paperless application process. Thanks to a simple and speedy online disbursal process, you get paperless approval and money in the bank in 20 minutes. You just need to verify an online, pre-filled loan application form. Once you review and submit it, you get finance in just 2 clicks.
- Transparency without any hidden charges
It is important that you carefully read the fine print on your loan application form before applying for a loan. However, with a Bajaj Finserv Personal Loan you need not worry about hidden charges and you can easily get a breakdown of all associated costs, like processing fees and pre-payment charges, to arrive at the total cost of borrowing.
- Flexibility in loan repayment
Lenders like Bajaj Finserv offers customers a flexible tenor ranging up to 60 months for them to repay their loans. This allows borrowers to plan their repayment basis their monthly budget and income without putting a strain on their funds.
To get access to the best personal loan in India, check your pre-approved offer and get started!
Great blog for those who are looking to take loan for the first time. Dos and Don’ts are to the point and crisp clear.
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