4 Things to Look Out for When Availing a Personal Loan for the First Time
Do you need some urgent funds to pay for any immediate expenses? If you are not willing to borrow from your family and friends, then a funding tool can help you. We are talking about the instant personal loan facility.
An instant personal loan can give you an amount as high as up to Rs.25 lakh from leading online lenders at a reasonable interest rate. What’s more, if you are eligible for the personal loan, then you can get approval in 5 minutes and disbursal in 24 hours.
However, if you are a first-time personal loan borrower, you need to consider some vital points. Going through such aspects will help you apply for and manage the loan account effortlessly. Read on!
- Pick a lender with care
Banks and non-banking finance companies (NBFCs) may be luring you with a lot of features along with their personal loans. But, the trick is not opting for the first offer that you get over an email inbox or via an SMS. It is because you may miss out on better deals as a personal loan is unsecured and carry a higher interest rate. If you are able to get a good deal, it may help you in saving lots of money over its tenor. Hence, you should research and compare all available instant personal loan offers at a third-party website and then only pick up one as per your needs and affordability.
- Check out prepayment and foreclosure charges
RBI has directed banks not to charge any amount from borrowers on account of making some prepayments and foreclosing home loans earlier. Some lenders charge an amount if you prepay or foreclose other accounts such as a personal loan. Thus, make sure to opt for a lender with the lowest prepayment and foreclosure charges. Still, most of the leading lenders will not charge any fee from you on availing the discussed services.
- Check your CIBIL Score
The next thing is checking your CIBIL Score as it a parameter that will determine your creditworthiness to a lender. Depending on how well or bad you managed past credits will impact the Credit Score. A score of 700-750 is taken as healthy by lenders to sanction your instant personal loan request at a lower rate of interest. Hence, ensure to maintain a robust CIBIL Score by paying your entire existing loan EMIs and credit card outstanding on time.
- Check your eligibility
You should also check your personal loan eligibility by using an online tool such as the personal loan eligibility calculator. The tool is available at a lender’s website for free which can show the eligibility for an amount as per your income. This way, you can apply for an exact amount and get approval instead of applying for a higher amount and being rejected.
Some of the tips to help you go through your instant personal loan are now discussed. It will surely help you approach your loan application with care and confidence.
NBFCs offers pre-approved deals on personal loans, home loans, business loans, and loan against property, EMI finance, credit cards and others. Going for such offers will help you simplify the overall loan system and make it fast.