10 Important Facts To Consider When Taking Personal Loan in 2019

important facts about personal loans

Often in life, you may need a lump sum of money to fulfil your personal needs. This could take the form of expenses related to remodelling a house, fixing a car, or funding a dream holiday. At times, it may be hard to arrange all the money at a time. It is in such situations that a personal loan comes in handy. You can get personal loan approval from the lender by fulfilling their personal loan eligibility criteria. The personal loan interest rate you opt for is one of the most important things you need to consider. This will help you to pay off your equated monthly instalments (EMIs) without any trouble.

Taking an instant personal loan may ease certain financial burdens. But do consider these important facts before taking a personal loan.

Interest Rate

Once you decide to take a personal loan, the next step is to think about the interest rate. The best thing would be to compare personal loan interest rates offered by various lenders. You can calculate personal loan EMI when you know the interest rate. Factors like your age, loan tenor, income stability, and credit score drive your personal loan interest rate.

Stable Income

To a lender, your repayment potential is one of the assessed points. A regular income and stable finances will go a long way in helping you get a loan. The loan’s EMI must not consume your entire salary. Lenders are wary of such borrowers. Thus, it is important to plan your finances well. Ensure that you have enough money to cover your other expenses.

Credit Score

A personal loan does not get sanctioned against any asset. So, having a strong consumer credit score is an advantage. The CIBIL score is a popular and reliable way to assess your credit history as it determines your personal loan eligibility. A score of 750 or above is a good score to get loan approval.

Early Closure Charges

Every lender has a maximum loan tenor. But, you can try to reduce the time span and repay your loan sooner. In the long run, you can save some money on the total interest paid. Check whether the lender has a flexible repayment policy and how much you have to pay as foreclosure charges.

Processing Fees

Like any other loan, a personal loan comes with a processing fee. But the amount varies from lender to lender. A processing fee is a one-time charge which you need to pay as a certain percentage of your personal loan amount. A lower processing fee will be beneficial. You should also take a look at other charges like late payment fee and cheque bounce. Being aware of these extra charges will help you plan for them better.

Documentation

To ensure a hassle-free loan approval, you need to submit some documents along with your application form. These include the Aadhaar card, salary slip, and Personal Access Number (PAN) card. Make sure you have those documents ready beforehand.

Job Stability

While approving your loan, the financial institution gives importance to your source of income. So, the stability of your job matters. Thus, it is advisable not to change jobs during this time.

Reputed Lender

It is always better to borrow money from a legitimate financial institution to avoid difficulties. Reputed lenders like Bajaj Finserv will give you peace of mind along with transparent procedure, attractive interest rates, and viable repayment calculation.

In fact, Bajaj Finserv brings you pre-approved offers for employed personal loans, home loans, business loans, and several other financial products. Not only does this simplify the process of availing your loan, but it also helps you save on time. All you have to do is share a few basic details and check out your pre-approved offer.

Customer Service

Every customer wants high-quality service. Lenders that prioritise good customer service ensure that your approval process is hassle-free, all your queries are answered on time, and you are guided through the process with ease.

Conclusion

The rules and regulations differ from lender to lender. Do compare different lenders and then choose the one that suits you the most. Make sure you go through all the terms and condition to avoid any last-minute surprises. A personal loan is a convenient way to fulfil your financial need. Just keep the above points in mind. You should soon be able to choose the best loan for yourself.

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About the Author: Derek John

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