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Here are some things to keep in mind before you plan to apply for a loan in India
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One of the most profitable features of any retail bank is loans. The premise is simple. Banks offer a financial sum to a customer to accomplish a task and the customer in exchange pays back the sum with interest over a period of time. However, before taking one, there are a few things to keep in mind
c There are different types of loans with different purpose, interest rates & duration
What are different types of Interest Rates When you apply for a loan; you get the option of choosing one of two interest rates—Fixed or floating. The former is you paying a set interest rate for the entirety of your loan period. The latter is you paying an interest rate which fluctuates according to market conditions. Know about the current interest rates & charges
Is age considered? Apart from your job and your credit history, banks consider your age as well. Banks consider people in the age group of 28-50 as the idea loan application. They are settled into their jobs and have a likely hood of paying back the loan. Anyone over the age of 55 or 60 will often see their loan application rejected. That’s because, at that age, repayment isn’t assured.
If you work in a blue chip company or are a government employee, you are termed as an applicant with a stable job. This increases your chances of loan approval. Why? Stable jobs indicate successful repayment of the loan and that is the bank’s main concern while they inspect each application. Have you defaulted on your bill payments? Enquired one too many times for credit cards or loans? If the answer is yes to both these questions, then you have a low credit score. This score measures your creditworthiness. A low score often leads to rejection of loan applications.
