Back4 things to keep in mind before you apply for a personal loan
Educate yourself about the features of an unsecured personal loan and the responsibilities that are associated with borrowing money.
PremiumWith the pace of advancements in the financial technology space, getting a personal loan is now easier than ever. Banks, non-banking finance companies (NBFCs), loan apps, and other lenders offer instant financing that you can get from your smartphone or laptop – without even having to leave your home.
Most personal loans are unsecured – you are not expected to submit any collateral to get your money. Smart features such as instant approval and convenient interest rates are adding to the popularity of personal loans and offerings such as Bajaj Finserv Personal Loan are emerging as the most preferred means of financing available today.
But borrowing money from a lender comes with the responsibility of having to repay it. And as convenient as the loan may be, the responsibility of timely repayment rests squarely with you. So, before you approach your lender to apply for a personal loan, take the time to educate yourself about your financial requirement and the terms of the loan you are likely to avail of. Ask yourself why you need the money, what is the EMI amount that you can afford over the length of your tenure, and more.
To help make sense of this, read up on this handy guide before you apply for a personal loan.
1. Understand your lender’s eligibility parameters
Before you choose your lender, start by learning about the eligibility criteria required to get the personal loan. The terms of eligibility differ from lender to lender. And while most of these are easy to qualify for, it helps to know what you are in for. You are likely to be asked about your age, city of residence, monthly income, employment and a few more details. But remember, failure to meet your lender’s terms could lead to delays or even rejection of your application.
2. Keep your documents handy and know the application process
Once you are aware of the eligibility parameters, you will need to prepare the necessary documentation and learn about the application process. You will most likely be asked to submit your KYC proofs and payslips to prove your identity and income. So, read up about the paperwork and the process on the lender’s website and save time by keeping your documents handy.
PRO TIP: Look for lenders who bring you specific offers that could save you time and effort. Bajaj Finserv, for instance, offers pre-approved offers on 100% online personal loans.
3. Learn about the fees, interest rates, and charges
Enquire about the terms that determine the actual cost of your loan – the interest rate and miscellaneous fees that can make or break your personal loan. While the interest rate is usually mentioned upfront, the charges related to processing fees, bounce, penalties, and more are usually mentioned in the fine print. This is what you need to compare before you choose your lender. Some of these may be mentioned as percentages of your loan amount and may add up to a hefty sum if you are not careful.
4. Check the terms of repayment and ask for special features
Be very careful while choosing the duration of your loan. Longer repayment tenures usually mean lower EMIs but larger interest payments and vice versa. Choose a tenure that is manageable across the length entire of your loan to be financially healthy. Aside from this, you may also ask your lender about special features or offers that they may be running on your personal loan. Some NBFCs bring you greater flexibility on personal loans by offering interest only EMIs for a part of the tenure. This can help reduce the burden of EMIs and make your personal loan more manageable. You can also calculate personal loan EMI by using a personal loan calculator available on lenders website.
This laundry list is meant to help you understand the various elements of the personal loan you are looking to borrow. Compare the offerings made by different lenders and make an informed decision. Bajaj Finserv, one of the most diversified NBFCs in the country, offers instant personal loans with a number of attractive features including the Flexi Loan facility and complete transparency. Head over to their website to read about their online application process and see if you qualify for a pre-approved offer on a Bajaj Finserv Personal Loan.
Disclaimer: This content is distributed by Bajaj Finserv. No HT Group journalist was involved in the creation of this content.
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