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A personal loan is one of those prudent solutions for short-term emergencies or financial crises. The loan is extremely handy and can manage both unplanned and planned expenditures. Technological introduction and digitization in the processing of personal loans have expedited the whole process, and as an outcome, you can apply for the personal loan like BOB personal loan, Axis Bank personal loan, Bank of India personal loan and others through the online mode and get the approval on the same day.
Sounds extremely good, isn’t it? However, this is true. Quick disbursement, swift approval, and various other parameters like this make your personal loan one of the wanted loan instruments for the majority. Well, despite such benefits, there are specific factors about a personal loan that stay untold. However, do not be scared; here, I will give you all the required personal loan tips that no one will ever reveal to you.
Avail personal loan just when it is required
This fact, the rate of interest charged for a personal loan is way higher than any other loan. Thus, keeping this in mind, you must always apply for a loan just when it is required. Also, it is crucial to understand that while a personal loan assists you in paying for your financial goals that are short-term in nature, you will be repaying for it for the next some years without fail. Hence, it becomes crucial to make sure that you will be able to make your monthly repayment from your income.
Be thoroughly careful about the additional fees.
Before you decide on opting for a specific bank for a personal loan, you must enquire regarding the additional fees and other rates of interest. Processing charges, verification fees, GST, penalty on foreclosure or prepayment on loan, penalty on late EMI repayments, and a few of them.
So, you must ensure that you factor in such parameters as these fees can club in to form a higher amount.
Opt for a shorter repayment tenure
There are banks or loan providers that offer personal loans for a higher repayment tenure with lower loan EMIs. This is extremely tempting for most as they may think they will be able to save on their loan EMIs. However, it is worth keeping in mind that in the case of higher repayment tenure, you tend to pay more to the constituent.
Having a strong credit score can assist you.
This is certainly not known to a lot of people that holding a strong credit score can assist you in availing of the best personal loan deal possible. Holding a strong credit score endows you the edge to negotiate with lenders for a reasonable rate of interest. For instance, if you are opting for BOB personal loan, then you can request the lowest Bank of Baroda personal loan interest rates as per your credit profile.
Research well before you apply.
There are various personal loan lenders in the market, and each of them provides the same product at a distinct rate of interest. To avail of the best offer on a personal loan, conducting in-depth research is important. So, before you apply, make sure that you compare the features like repayment tenure, rate of interest, processing charges etc. and then zero on the best personal loan provider that matches your needs.
Thus, if you are looking to opt for a personal loan, it is necessary that you factor in these parameters as they will not just assist you to avail of the best personal loan deal but will also keep you safe from your future troubles.
Are you contemplating avail of a personal loan to finance a huge payment? A personal loan can for sure assist you in making the payments for your different credit requirements like planning out a wedding, family vacation, renovating your home etc. Additionally, you can take up this loan without availing of any security or collateral. The process involved in documentation even is not as complicated as other loans.
Hence, it may appear thoroughly simple to avail of the personal loan benefits. However, there are crucial things you must note while looking for a personal loan. Read on to know –
Avail a loan just when it is required
A personal loan must just be availed after an in-depth evaluation of your needs and existing repayment commitments. It is crucial to note that while a personal loan will assist you in repaying your short-term financial goals, it will be the additional payment for the upcoming certain years or months that you must do without fail. Thus, it is important to make sure that you can conduct your monthly repayments from your monthly income.
Research well before applying
With an increase in personal loan lenders and their bold claims, it is possible to be swept away by attractive loan offers without going through the terms carefully. Thus, it is necessary to conduct your research before you choose your personal loan. Make sure to compare all the features like loan repayment tenure, rate of interest, processing charges etc. and pick the lender that matches well with your financial requirements.
Look for the lowest rate of interest.
A personal loan usually has a high rate of interest because there exists no security or collateral. As the interest that is to be paid is extremely high, even a minor change in the rate of interest can result in a massive difference in the overall amount you would require to pay as interest. This makes it necessary to look for lenders that can provide you with a great deal on the rate of interest depending upon the requirements and credit score.
Go through the eligibility parameter.
Before narrowing down on the bank, and the personal loan that best matches your requirements, ensure to review your loan eligibility criteria. One of the crucial eligibility parameters is your credit score and income, as these show your repayment potential. The higher your credit score and income, the more likely you will get your personal loan approved at a higher loan amount.
