In the present times, financial uncertainty has become a way of life. No matter how hard you try to avoid such an unwarranted situation, the fact of the matter is that you will have to face it at one point or another. Of course, you have your savings to help you in such times, but would it be wise to exhaust your entire savings and then be left vulnerable for any other situation. What could you do to avoid this eventuality?
Similarly, you or your family members could have particular wishes that you really want to fulfill but are restrained by your financial situation. It could be going on a holiday, renovating your home or going abroad for education or anything else that you really want to do. So, do you think of waiting till you have saved enough money for the same or want to do something right now? In both the situations, the basis is different, but the real root of the problem lies in the paucity of funds. One of the best ways to handle such a situation is Applying for Personal Loans.
What are Personal Loans?
Personal Loans are unsecured loans that are extended by financial institutions for any purpose that you may require. There is no need to provide security against a Personal Loan, and you also need not inform the lender about the usage pattern of the money. You just need to make sure that you repay your EMIs (Equated Monthly Instalments) on time. The tenure of Personal Loans goes up to 60 months.
How to apply for Personal Loans?
As mentioned above, Personal Loans are offered by almost all financial institutions in India. You can log-on to the internet and browse their respective websites to understand the various Personal Loan types and availability of low-interest Personal Loans. If you want, you can also walk into the office of any of these lenders and apply for a Personal Loan offline.
Here is a step-by-step guide to help you choose the perfect Personal Loan to help you fulfill your requirements:
Check your credit score:
This is the first step of the process. Every lender checks your credit score and only if it meets their eligibility criteria, they process your application. If your credit score is below the desired level, the chances of success for your application are reduced and even if anyone would agree to approve your loan the rate of interest would be higher. So, you should definitely check your credit score before applying. If it is below the required level, you should work towards improving it.
Prepare your documents:
You should prepare all your financial documents and keep their scanned copy as well as hard copy ready with you. Some of the necessary documents that you will need are your income tax returns, bank statements, net worth statement, KYC documents, and so on.
To understand the various Personal Loan types and availability of low-interest personal loans, you should conduct thorough research and make inquiries. There are multiple types of loan available, so it is essential for you to understand which product meets your requirements better.
Understand your repayment capacity:
Various lenders have online calculators that help you understand your EMI payments. So make use of this free tool to know how much you can pay comfortably every month and then finalize the amount you are going to opt for.
Understand terms and conditions:
Before you sign any agreement, understand the various terms and conditions that may impact your decisions. Do not rush into deciding, take your time, read the fine print, ask questions to get a better understanding regarding the interest rates, fees, charges, terms, and conditions.
Make it a point to negotiate hard with the lender in order to get the best deal for your Personal Loan. Remember even slightest reduction in interest rates means significant savings in interest payments. You can even get some discounts or rebates or freebies if you persist. Remember money saved is money earned.
Fill in the Application form:
As per your convenience, you can choose to apply for a Personal Loan either online or offline. You just need to fill in your basic details and upload the necessary documents. If you have any queries, you can make a call to their helpdesk and get any information that you need.
Usually, Personal Loan applications are approved in a few days, but if your application is taking longer then you must follow up with the lender. Sometimes your application is put on hold due to lack of some documents, so you must provide the pending documents at earliest to ensure speedy approval of your application.
Applying for a personal loan is an ideal decision when you are facing any short-term liquidity crunch or need funds for an upcoming occasion. It helps you meet your liabilities on time without affecting your savings.
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