An unsecured personal loan, as the name suggests, is external financial assistance aimed at catering to personal needs during times of monetary crises. Whether planning your children’s overseas education, looking to give your residence & office a makeover or listing your wedding expenses; personal loans prove to be the go-to option for all.
Additionally, these being unsecured loans, do not require an individual to mortgage or hypothecate his/her asset. Not to mention, many lending institutions promise affordable interest rates and flexible repayment tenures, which make it easier to avail a personal loan online.
However, before approaching a financial organisation, take a look at these golden rules that can make your loan availing process much easier.
1. Choose your lender carefully – Lending organisations may offer low unsecured personal loan interest rates, zero processing fees or similar features. Yet, assuring a lender’s credibility is vital. Do your research for scrutinising an organisation’s lending history. While customer feedback and reviews may prove fruitful, talking with previous customers can provide you with precise information.
2. Loan approval procedure – Often, many organisations ask for a number of documents before approving an unsecured personal loan request, thus, dragging the disbursal process. So, scan the market and go for reliable financial companies like Bajaj Finserv.
3. Borrow wisely – Often applicants tend to borrow more than what they actually require. This, in turn, generates greater EMI amounts causing a person to default on his payments. As a result, his credit score gets affected hampering his future borrowing capabilities.
So, calculate your monthly expenditure to income ratio and measure your ability to pay instalments before giving in to unsecured loans.
4. More than one loan application – Multiple loans will increase the financial burden of a borrower which can be difficult to repay within time.
Even in case of minor debts, bringing all dues within one bracket seems to be an ideal choice.
5. Calculate your EMIs beforehand – Every loan comes with competitive interest rates. So, it is necessary to calculate your EMIs and plan your monthly expenditures accordingly to avoid a default. Failing to do so will not only impose penalties but also hamper your overall credit score.
6. Loan repayment schemes – Reliable lending institutions like Bajaj Finserv provide flexible repayment options to their customers with their Flexi-hybrid feature. An applicant can borrow as much amount as necessary within the sanctioned loan limit and pay interest only the same.
Additionally, he/she can choose to pay only the interest amount as EMIs and repay the principal at the termination of the loan tenure.
How to apply for a personal loan?
The primary step is to match the unsecured personal loan eligibility. Here’s mentioning a step by step procedure of a loan application:
● Understand the loan details including interest rates, repayment period, etc.
● Calculate your eligibility and EMIs.
● Receive instant approval through the online application.
● Get money disbursed in your account.
Monitor your loan repayment intricacies through online portals provided by most institutions. So, apply for unsecured loans today and suffice your monetary needs with ease.