A personal loan helps you deal with many of your expenses which have to be funded immediately. Many individuals need a personal loan from banks to help them pay their losses and simplify their life. These may be for the marriage or wedding or any big events, family trips, vacations, home renovations, other repairs, or even debt consolidation.
Bank loan apps are in high demand in India, especially since the pandemic has spread at an unprecedented rate across the country. As a result, many people find themselves in financial distress, unable to find work. However, there are multiple ways to get a personal loan from. It can be achieved by approaching a bank, any financing application or website, or FinTech companies.
Do you meet the eligibility criteria?
Before you apply for a personal loan, make sure that you meet the eligibility requirements. The terms differ from one lender to the next.
- The applicant should be employed because each lender’s qualifying requirements fluctuate depending on whether the borrower is salaried or self-employed.
- A personal loan is often available to adults between the ages of 21 to 65 years.
- The monthly net income required to qualify for a loan ranges from Rs. 15,000 to 20,000.
- A minimum amount of work experience, such as one year in the current employment or two years in total, may be required of the borrower.
Things to lookout while applying for a personal loan:
- Interest rates: Set your sights on the lowest possible interest rates. Personal loans are typically offered at higher interest rates than secured loans. Hence it is important to maintain a good creditworthiness to be eligible for a negotiable interest rate.
- Credit score: In addition to the necessary interest rate, before approving your loan application, the lender will examine your credit score. A better credit score can assist you in getting a personal loan at a lower interest rate.
- Reviews and ratings: It is advised to first check the background of the lenders if it's authentic and trustworthy. For this, one may check the reviews and ratings given by people as per their experience.
- Tenures and loan amount: The loan term should be appropriate for your requirement. In case of failure in paying back the loan on time, your credit score will be affected and the ability to borrow in the future will also be vague. As a result, make sure you'll be able to repay on time and hence choose a flexible tenure plan.
- EMIs and down payments: To maintain financial stability and comfort while calculating the EMIs, make your loan requirement lower than your repayment capacity. This will lower your burden of EMIs.
Consider all of these mentioned factors before planning and examine the personal loan options available in the market for better guidance. After you've compared all of the loan options, choose the one that best meets your needs and has the low interest rate personal loan.