Looking to get a Personal Loan? Here are some pointers to keep in mind
As more financial services go digital, getting a personal loan in India is now easier than ever. With all required documentation now only a few clicks away, you can carry out financial transactions, including loan applications and EMI repayments, securely, right from the palm of your hand.
Apart from being able to apply right from your smartphone, today you enjoy a more streamlined personal loan approval process. Further, many financial institutes also provide pre-approved offers, depending on your personal loan eligibility.
If you’re looking for a personal loan, rest assured that there are plenty of options to choose from, irrespective of your income bracket or desired loan amount. Here are some basic factors to keep in mind when applying for a personal loan in India to make the process both quick and easy.
Find the right lender as per your personal loan eligibility
Financial institutions have a variety of loan offerings, each of which caters to a specific demographic. Some loans are short-term with high-interest rates, others have a longer tenor but require smaller monthly repayments. Some borrowers find that paying a larger sum over a shorter time frame is more economical for them and others prefer to manage a smaller loan burden over a longer period. Consider your financial status and accordingly identify which lenders are offering the terms that best suit you.
Checking the lender’s eligibility terms is important as it helps you get approval quickly and easily. You can use a personal loan eligibility calculator to do so. This online tool helps you ascertain whether you meet the parameters set by your lender before you actually go through the application process. Since your credit score also forms an important part of personal loan eligibility criteria, get your CIBIL score beforehand to expedite your application.
Find a suitable interest rate
Interest rates do not exist in a vacuum. While it makes sense to opt for a loan plan that offers the lowest interest rate, you need to consider the loan tenor and loan type before making your final decision. A low interest rate repaid over a long term could amount to a significantly higher repayment amount, as opposed to a short-term high interest loan. What’s more, some interest rates are fixed over the entire loan tenor, while others are flexible and change according to market standards. Make sure you have all the information you need about the current personal loan interest rates before deciding.
Calculate your EMI before you apply
A good way to compare loans is to consult an online personal loan calculator for EMIs. All you have to do is plug in your loan amount, interest rate, and loan tenor, and the calculator will accurately determine the instalment you will be expected to pay each month. Consult the calculator for a variety of loan options, and make your decision based on which plan serves you for the long term.
Learn about the personal loan approval process
With a range of financial offerings in the market, including personal loan apps that offer increased accessibility and 24/7 services, the approval process has never been easier for a personal loan in India. However, you will still need to ensure you have all the required documents and data at hand before you apply.
Lenders typically require a PAN or Aadhaar card, or both, as well as bank statements, payslips and tax returns. Find out what each lender requires before you start making an application. Also, determine how easily accessible their services will be once you have been approved so that you don’t find yourself caught up in paperwork at the last minute.
If you find that you’re ready to start looking for collateral-free finance, consider the Bajaj Finserv Personal Loan, which requires minimal documentation and offers approval in as little as 5 minutes. Its online loan application form is also short and simple and its eligibility criteria are easy to meet. Check your pre-approved offer right away and get funds up to Rs. 25 lakh, which you can repay over up to 60 months. What’s more, you could opt for a Flexi plan and pay interest-only EMIs for the initial tenor to lower your instalments by up to 45%. Apply now to get the money you need from the comfort of your home.