A personal loan is one of the easy ways to deal with sudden expenses or immediate needs. There is a wide range of personal loan apps that offer to serve all the loan related needs to their customers. Below are some important things that need to be know before availing an instant loan –
Defining a Personal Loan –
A personal loan is an unsecured financial assistance i.e the lender will not ask you to pledge any collateral to avail this loan. As there is no security using against it, its rate of interest is generally high. Also, it is readily available through personal loan apps after easy verification. It has no restrictions on its end-use. So, this fund can be utilized for any purpose – Travel, Education, Wedding, Home Renovation etc.
But applying for it through a bank can be tedious and the lengthy process, stringent criteria for eligibility etc. Hence, personal loan apps are a convenient medium through which one can avail an instant loan very easily.
Purpose for which Personal Loan is needed –
First things first. Your loan journey begins with this question. You must be clear about the objective for which you need a loan. This might help you stay focussed on spending the amount in the right direction.
Knowing the amount you exactly need –
Once you have a clearly defined goal, you should try to figure out how much money exactly will you be needing for it. Vague estimates can either fall short of fulfilling your needs or be a burden on you for repayment. Hence, please think through well before applying for any instant Personal Loan.
Analysing your income –
This is a very important doubt that each one who wants to opt for a Personal Loan comes across. Your salary gets spent on several things. You must ensure that there is enough amount remaining to pay an EMI; AFTER fulfilling your basic needs. Only after thorough planning you can ensure that you would be stably paying your EMIs for Personal Loan on time.
Checking your CIBIL score –
Your CIBIL score is a significant parameter that is taken into consideration before the approval of your Loan. It is important to analyse your Credit Health Report and improvise on your shortcomings. A good credit score is always crucial in getting an approval for any loan application. To check your Credit Report, click here.
Understanding Flexi Personal Loan –
Flexi loan is a novel product in the market and is gaining popularity rapidly. You are given a line of credit based on the strength of your credit health. From this line of credit, you can avail as much amount as you need. You will charged interest only on the amount you have used.
Interest rate for Personal Loan –
Before fixing the lender from whom you will be availing an instant Loan, you must do a thorough background check of what are the ongoing interest rates in the market. You possibly cannot accept the offer from the first lender you come across. Look for different options and pick whichever is suitable for you.
Personal Loan Tenure –
This completely depends on the tenure you opt for at the time of availing the loan. There are multiple EMI calculators available online that can help you get an estimate of the EMI, interest, and tenure of your instant loan. Usually, longer tenure for repayment can help you improve you CIBIL score if the EMIs are paid regularly.
Fees & Charges –
Different lenders have their own fees & charges predefined. You must carefully understand all the details of these charges before availing a Personal & do not hesitate to ask questions to your lender about it.
Documents for an instant Loan –
Ans: In order to get a speedy approval of your Personal Loan, you must have all the documents that are requested by your lender ready to be produced. Get a complete list of documents from your lender beforehand and collect all the enlisted items in one place for your convenience.