A Personal Loan is a flexible financial tool that can help you cope with financial uncertainties. Most commonly, Personal Loans are taken to fund requirements such as medical bills, weddings, home renovations, debt consolidation, vacation costs, etc. Numerous statistics show that the number of Personal Loan applications in India has soared.
A Personal Loan is an unsecured loan (requires no security/collateral) that most Banks, Fintech lending companies, and NBFCs offer to their borrowers. Lenders evaluate your credit history, income, and credit score to check your Loan eligibility.
Personal Loans are becoming popular in India due to following reasons:
• Lesser documentation;
• Lower Interest rates;
• Hassle-free application approval and disbursal;
• Debt consolidation;
• Security/Collateral free;
• Easy availability.
However, before opting for Personal Loan, you must know the following tips:
• Research completely: Due to the availability of many options online, don’t get swept away with the interesting Loan offers without reading the terms and conditions. Run your thorough research and compare features such as interest rate, processing fees, Loan tenure, etc. before opting for a Personal Loan.
• Compare the interest rates: Personal Loans have a higher rate of interest as there is no collateral involved. The monthly EMI payments are based on the ROI of your Loan. A lower ROI will help in faster repayments of the Loan. Hence, check with several lenders for what interest rates they are offering then take a decision.
• Check eligibility: One of the very important eligibility criteria is a credit score and income, which indicates the credibility of your Loan repayment. Make sure that you match these eligibility criteria to get an easy Personal Loan.
• Maintain a good credit score: A high credit score can boost your chances of getting a Personal Loan easily with an attractive rate of interest rate. A poor credit score can hinder your Loan procurement process and indicate that your Loan repayment history is not creditworthy. Therefore, maintaining a good credit score is most important.
• Check prepayment and other charges: Personal Loan includes other charges, which you need to be aware of. Check thoroughly about processing fees, prepayment charges, penalty on cheque bounce, late payment charges, etc.
• Make timely payments: Make your credit repayments timely, as it will prevent unnecessary penalties. Maintaining a good repayment history also proves that you are creditworthy which will help you avail more credit easily in the future if needed.
• Choose short Loan repayment tenure: Many lenders provide long repayment periods as a low EMI option, which can result in a high-interest rate. Shortening Loan repayment tenure can save you from paying extra interest and lower your burden.
In conclusion, a Personal Loan can be an ideal product when you need urgent money in case of an emergency. Personal Loans are disbursed quickly with an easy and hassle-free process. Due to so many options available online, it can be difficult to choose the right lender. Hence, the above tips can assist you to make the right decision.
RULOANS is one of India’s leading credit financing companies. From Personal Loans and credit cards to mortgages, RULOANS help customers to choose the right product as per their need.
For instant Personal Loans or any other kind of financial requirement, you can connect with us at www.ruloans.com now!