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Benefits & Drawbacks of Personal Loan

How to get best personal loan<br>1. Applying For Personal Loan? www.afinoz.com<br>2. www.afinoz.com What Is Personal Loan Personal loans are meant to meet short-term financial needs i.e. you can borrow money for a minimum period of one year to a maximum of five years. The needs may vary as an unexpected medical emergency, going on a vacation, home renovation, buying consumer durables, or to repay credit card debt or any other personal exigency which has a temporary effect on your earnings.<br>3. Know About Common Mistakes While Applying For Personal Loan Applying Without Comparing One of the biggest mistakes people make when applying for a personal loan is that they go to the bank with which they have done most business, without shopping around for the best deal. There are things like interest rate, processing fees, prepayment charge, loan tenure and loan amount which may vary from lender to lender. So, it is important to research and make an informed decision to conclude the best deal. Unable to clarify the details for taking the loan One of the most common mistakes loan applicants make is that they canu2019t clarify the loanu2019s detail i.e. purpose, tenure and amount. Mostly it is because borrowers themselves are not fully aware about the same. www.afinoz.com/personal-loan-india<br>4. Ignoring the importance of credit history Lenders asses your eligibility based on your credit history. They check how you have managed your finances in the past. If borrowers have a proven track record in maintaining financial responsibility, they are likely to have a good credit score. A good credit score plays a vital role in determining your eligibility for a loan and the interest rate thereon: Hiding details of an existing loan It is imperative that you should inform your lender about your existing financial transactions and liabilities. You must be honest about your financial status because concealing such information from lending companies will only make it difficult for you to avail of a loan Signing blank documents or form Once we start the loan application process and meet the banku2019s representative, we become lazy. For example, the executive comes to our doorstep to collect the required documents and get the form signed. https://www.afinoz.com/personal-loan-check-eligibility?step=1<br>5. Ignoring the fine prints When applying for loan most people donu2019t read the fine print under the impression that it does not contain important information. This fine print, generally, contains the fees and charges which borrower needs to pay in certain conditions. Skipping this step may land you in trouble later. For example, if you have applied for Rs. 5,00,000 loan, you will get Rs. 4,90,000 to your account. A personal loan application without any mistakes and discrepancies will lead to a faster and hassle-free approval. For more information about personal loan, you can go over to personal loan page on Afinoz.com. www.afinoz.com/personal-loan-india<br>6. About Afinoz Personal Loan Afinoz.com is India's foremost online financial marketplace for availing loans and investments. Our main objective is to make the process of getting a loan or making an investment safer, convenient and hassle-free for individuals. We work with public and private banks, NBFCs and mutual fund houses across the entire country and offer an unbiased quotation on financial products. www.afinoz.com/personal -loan<br>7. https://us.afinoz.com/

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Benefits & Drawbacks of Personal Loan

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  1. Benefits & Drawbacks Benefits & Drawbacks of Personal Loan of Personal Loan

  2. Prologue of Personal Loan Prologue of Personal Loan There are myriad of desires which go unfulfilled because of lack of funds. One must have considered taking a loan to fulfill your desires and aspirations. The paperwork and the time the bank will take to process your loan is sure to daunt the individual. The biggest problem is to find something of sufficient value to pledge as collateral. However, the solution to all these problems is simple.

  3. Prologue of Personal Loan Prologue of Personal Loan  Majority of the people who experience financial difficulties have the bad habit of filing for loans when doing so can do them more harm than good.  To keep oneself from experiencing bad financial consequences in the future, one have to see to it that an individual carry out a good amount of research that will help him/her assess two things: 1. If an individual really need to file for personal loan 2. If one can repay it without damaging his/her credit rate.

  4. Benefits of Personal Loan Benefits of Personal Loan 1. 1. Online Applications: Online Applications: Most banks allow an account holder to apply for personal loans online loans online. This saves you from going to the bank and waiting to find an employee who is free to attend to you. apply for personal 2. 2. Quick Sanction of the Loan: Quick Sanction of the Loan: A personal loan is ideal if you require money in a hurry. An account holder gets a loan almost as soon as it is applied for. The other plus point is banks disburse loans on the very day it is sanctioned. 3. 3. Documentation: Documentation: Another benefit of personal loan is that there is hardly any requirement of paperwork in a personal loan because it is an unsecured loan. 4. 4. Proofs Required: Proofs Required: If you can provide your address proof, identification proof, and income proof, the loan is yours to enjoy. 5. 5. No Hidden Charges: No Hidden Charges: Most banks encourage their customers to take personal loans. This is why there is very little paper work involved. Another way that the banks make personal loans attractive is by ensuring that all the charges are up front. In this manner, the applicant is saved the burden of paying hidden charges. Hidden charges ultimately hike up the rate of interest in a loan. This is another reason why personal loans are popular.

  5. Benefits of Personal Loan Benefits of Personal Loan 6. 6. No Collateral: No Collateral: Personal loans are unsecured loans, therefore, they do not require any collateral. Free Usage: Free Usage: Every other kind of loan binds the borrower to use the money for the purpose for which the loan was sanctioned. If it is a business loan you have applied for, then you have to use it for business only and nothing else. If you have taken an automobile loan, then you must buy an automobile. But personal loans do not bind you in any manner. Only a personal loan allows you to spend the money as and where you want to spend it Repayment: Repayment: An account holder has a choice in the repayment plan of a personal loan. Repayment could be made lump sum, in a few installments or it could be spread over many months in equated monthly installments. The choice lies with the applicant. No Penalty: No Penalty: There is a penalty for part payment or early repayment of personal loans. Easy Transfer: Easy Transfer: As an account holder, it is easy to instruct the bank to transfer the installments for repayment. You are spared the trouble of manually transferring the money for repayment when it is due. Timely repayments will help in keeping your credit score healthy. 7. 7. 8. 8. 9. 9. 10. 10.

  6. Drawbacks of Personal Loan Drawbacks of Personal Loan 1. 1. High interest rates: High interest rates: As these loans don’t need any security, they are regarded as high risk by the lenders. In order to offset their risks, these loans carry very high interest charges. 2. 2. No part payments: No part payments: Most lenders don’t allow part payment of loans. This means you end up paying the loan for the entire tenure of the loan. It can work out quite expensive, since your initial installments go towards interest payments.

  7. Drawbacks of Personal Loan Drawbacks of Personal Loan 3. 3. Need for good credit rating: Need for good credit rating: As these loans are quite risky, most lenders insist on their borrowers having a good credit rating. So if your credit rating is poor, due to failure to pay any loan, your application will be rejected. Hence this loan availability is subject to strict eligibility norms based on credit worthiness. 4. 4. Variable loan and interest as per your credit rating: Variable loan and interest as per your credit rating: Even those lenders, who offer loans to the borrowers with poor rating, end up offering lower principal amount and higher interest as compared to those given to borrowers with good rating. They also impose stricter repayment terms on these borrowers.

  8. Thank You !!! Thank You !!!

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