Five helpful times for personal loan seekers

by Kritika Jose I'm a financial advisor with an experience of more

No matter how much we work, save and invest there always a need for extra cash. Maybe you need to get the latest phone or laptop for fulfilling your hobbies, or you want to take that vacation you’ve always dreamt since you were a kid. Your income can’t always pay for your wants, but a loan can. A personal loan is loan that you can take to fulfil any of your wants. Instant personal loans can help you travel, furnish your home the way you want, renovate your property or even fund education or a medical procedure. You can even take a personal loan to fund your dream wedding.

Personal loan interest rates are affordable, the application process is super easy and more often than not your loan will get sanctioned. Just follow these simple tips and you’re sure to get an instant personal loan of your own.

1. Keep a check on your credit score: Your credit score is the most important factor that is taken into account for loan approval. It determines how worthy you are of getting credit. It is determined by you previous borrowing and spending habits, your income is also a factor. A healthy credit score makes it easy to get your loan approved.

2. Apply for the proper loan amount: You need to consider the loan amount you’re applying for very carefully. Banks often reject loans, if the amount is too high and the person is already paying multiple EMIs. Carefully consider your existing liabilities, your current income and expenses, before deciding on a loan amount.

3. Consider all factors before you choose your provider: The primary thing that people look for while applying for loans is the interest rates, and they mostly choose the provider that offers them the best rate. Compare multiple plans and consider other factors like loan tenure, maximum loan amount, processing fees, pre-payment/foreclosure charges, etc. Apply for personal loan online, as it gives you to compare multiple options all in one place.

4. Ensure your documents are in order: The basic documents that you require when you apply for a loan are, your PAN card, your AADHAR card and your bank statements, going back atleast six months. Make sure you have all your documents in order before you apply for your loan, any discrepancies in these can lead to your loan not getting approved.

5. Don’t make too many applications: Every loan application you make has an effect on your credit score. A bad credit score lead to the rejection of your loan application. So only make one application at a time.