Looking for a Personal Loan at Lowest Interest Rates?

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

Instant personal loans can get you out of a financial glitch in a jiffy. You can get a personal loan online, sanctioned and transferred into an online bank account within 24hours of applying. These loans are a great financial tool because they can be used for anything from medical expenses, education, travel to even weddings.

It is very easy to get a personal loan especially since personal loan eligibility is not so stringent. But, if you go wrong in your application you may have to pay with great consequences. This is because personal loans India have a huge impact on your credit score and each application can impact your credit score, so here’s a guide to applying for easy personal loans the correct way.

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 your 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. Choose your lender wisely: 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 plans from different lenders and consider factors like loan tenure, maximum loan amount, processing fees, pre-payment/foreclosure charges, etc.

4. Ensure your documents are in order: The basic documents that you require when you apply for a loan are, your PAN card, your address proof and your bank statements, going back at least six months. Ensure that you have all 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: When you make an instant personal loan application, it generates a credit report request from the prospective lender. This is called a “hard look” and the details of this credit report request show up on your credit report with date when this check was requested and purpose. If multiple queries are generated simultaneously, your report will show details of these requests within a short interval.