Things To Consider Before Applying For a Personal Loan:

1. Things To Consider Before Applying For a Personal Loan:

2. In the time of uninformed circumstances and emergency financial situations, we all need help from someone to get us out of the situation. This situation can be anything. It can be your credit card debt, unplanned travel expenses, marriage spends, medical emergencies, and many others. What you need at this time is a personal loan that can save you in this hard financial jeopardy. A personal loan is an unsecured type of loan that can be availed by anyone at an attractive rate of interest with easy and flexible repayment methods.

3. But one should think long and hard before applying for a personal loan because of the various lucrative options provided by several banks and financial institutions in India. But one shouldn’t fall in the trap, instead, you should closely look at all the factors involved before applying for a personal loan and decide accordingly to your financial needs. A personal loan will make you meet your financial needs in the most perfect way you can imagine. There are many types of personal loans available for you such as the marriage loan, education loan, Festival Loan, Home Renovation Loan, unsecured business loan and many others. In this article, we will give you some information about the things to look at when applying for a personal loan so that you can make the best decision. Some of the most important factors that you should look at are as follows.

4. Choosing the best-suited EMI: You should always check the amount of EMI before getting a personal loan according to your budget and financial needs. As an over-budget monthly installment can create chaos in your financial life. Always use the Personal Loan EMI Calculator before applying for a personal loan. • Deciding the right borrowing Limit: You should always decide the amount which you gonna borrow from the bank according to your repayment capability. • Don’t send multiple applications: You should not send multiple loan applications to different lenders as it can hamper your credit score pretty much. Compare different lenders and choose the one which is perfect for your needs.

5. Keep an eye on fee and hidden charges: Always keep an eye on the multiple hidden charges that banks levy on your loan. Look closely at them and choose the one who isn’t charging any unnecessary charges. Usually, lenders charge the processing fee of 1% to 2% of the total loan amount plus GST charges. It differs from bank to bank. • Interest rates: Make sure to get the personal loan from the lender who is providing the loan at the lowest rate of interest in the market. A higher rate of interest will only make your EMI amount higher and hence will make a dent in your pocket.

6. Tenure Period: Before applying for a Personal Loan, always choose the number of years by which you would be able to pay the loan with much ease. Generally, the tenure period ranges from 1 to 5 years. • Don’t forget to check your eligibility: If you’re fully prepared to get a home loan, you must check the eligibility before applying for the loan. With the help of the Personal Loan Eligibility Calculator, you can easily check your eligibility within a few seconds.

7. Role of CIBIL while applying for a personal loan: CIBIL Score defines how responsible and punctual you are in the repayment of your dues. Through your credit score, a lender can know about your credit history and then decide, whether to give a loan or not. The chances of getting a personal loan of you are higher if you have a good CIBIL score. A score between 700 or above out of 900 is considered to be a good credit score.