The personal loan sector has witnessed increasing demands despite the economic downfall due to the COVID-19 pandemic. This credit facility provides instant monetary assistance to individuals in need of funds during a crisis. Besides instant approval, borrowers can support their diversified financial emergencies, such as medical expenses, consolidating debts, fund weddings, etc., with a personal loan.
However, to avoid financial hassles in the future, potential borrowers must know how to apply for a personal loan in India with the best service terms.
Smart Tips for Applying for a Personal Loan Online
As already mentioned, a personal loan is a viable option for borrowers to manage different financial expenses with no end-use restrictions. Since this credit facility is unsecured, the entire loaning processing comprising application, verification, approval, and disbursal can be conducted online quickly.
Besides, intending borrowers can also apply for small personal loans online by meeting simple eligibility parameters. With instant approval and minimal paperwork, borrowers can avail funds within 24 hours in their account.
Read on to know the ways to secure the best personal loan in India-
- Thoroughly research and compare lenders
With the availability of multiple personal loan providers in the financial market, it is possible to get tempted with the most attractive loan offer without even checking the terms and conditions. Therefore, borrowers must compare factors like repayment tenor, associated fees and charges, interest rates and opt for one matching their financial requirements.
Besides, borrowers must note that personal loan rates are comparatively higher since it is an unsecured credit form. Therefore, a slight difference in the interest rate can significantly impact the overall borrowing cost. It becomes essential for borrowers to opt for lenders offering market-best interest rates. Along with this, borrowers must know how they can avail better interest rates for a personal loan to guarantee a comfortable repayment.
- Evaluate budget and assess exact loan amount
Before knowing how to apply for a personal loan, borrowers must evaluate their monthly expenses or obligations. It is essential to assess one’s financial affordability and see whether one can afford the EMIs or not. With leading financiers like Bajaj Finserv, eligible borrowers can acquire funds up to Rs. 25 lakh. However, it is advised not to over-borrow even if one qualifies for a higher amount. Over-borrowing will ultimately lead to increased borrowing costs and repayment burden.
- Use a personal loan EMI calculator and opt for a suitable tenor
While applying for personal loans online, borrowers need to construct an effective repayment plan. Borrowers can use a personal loan EMI calculator or an online interest calculator to compute EMIs with varying tenors to make a solid repayment structure. This online device will allow individuals to know the overall interest outgo and identify the best loan that matches their budget.
- Go for easy-to-meet eligibility criteria
During emergencies, one cannot afford to go through lengthy loaning procedures and extensive documentation. Therefore, one should pick a lender offering flexible eligibility parameters. As personal loans do not require any collateral, borrowers just need to fulfill basic requirements, such as-
- Applicant’s age should be within 21-67 years
- CIBIL score should be 750 or above
- Must be an Indian resident
- Must have a salary of Rs. 22,000 or higher, based on the job location
However, one must know the ideal CIBIL score for a personal loan before applying and maintaining it to confirm a trouble-free loan approval. Apart from these, borrowers need to furnish some basic documents, such as KYC, address proof, income proof, salary slip, etc., to support eligibility. Therefore, by meeting these eligibility parameters, one can secure funds without any interruption.
- Check additional charges
Before planning to apply for a personal loan online, borrowers must carefully check the associated charges, such as part pre-payment, foreclosure, penalty charges, etc. It is essential to go through these charges before finalizing a loan to avoid additional burdens.
For more convenience, borrowers can apply for this credit via multiple personal loan apps that are available online. Such an Instant loan app is best for salaried individuals to avail themselves of quick finances based on their eligibility.
Besides, eligible borrowers can also avail of pre-approved offers extended by large-scale NBFCs on a wide range of secured and unsecured financing options. These offers significantly reduce the hassle of lengthy documentation and save time. To check your pre-approved offers, enter your name and contact details.
To conclude, follow these practical tips when planning to apply for a personal loan online and avoid making mistakes while selecting this credit option.
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