RBL bank is one of the trusted bank known for offering personal loan at affordable rate of interest, flexible tenure, and maximum loan quantum.
Bajaj Finance Ltd., a part of Bajaj Holdings & Investment Limited, provides affordable financial services in the fields of personal loan.
Axis bank is one of the best bank known for offering personal loan at affordable rate of interest, flexible tenure with easy disbursal.
While it would be great if we had enough funds available to meet all life’s expenses with no worries, but, as we know things are not same every time. Sometimes we look for quick financial support to keep moving forward and that’s when personal loan comes as a handy, convenient, and affordable solution.
Life can anytime through us into some uncertain conditions and/or situations where we need quick money. Understanding the scenario, there are host of banks and financial institutions offering personal loan at affordable interest rates. This is an ideal loan you can go for during the rough patches of your life.
Personal loan is a type of unsecured loan where the applicant borrows a sum of money and assures to repay the loan amount to the lender along with the computed interest rate. Moreover, no collateral is involved to get the loan, though, the lenders consider other factors to determine creditworthiness of the borrower such as credit score, ongoing loan or credit, income proof, and eligibility.
Meanwhile, it apparently seems to be an ideal and convenient handy financial solution, still there are certain factors that needs to be took care of. So, here are few things that you must consider before applying for a personal loan online or offline.
Get the Best Deal – The financial segment is flooded with several banks and NBFCs offering personal loan at competitive rates of interest. But, when you take a deeper insight, the scene is different because there are hidden charges incurred in the name of processing fee, pre-payment charges, and so on.
Heart Over Mind – Going with the strong gut feeling might be a great option in life, but, while taking financial decisions, you need to set a budget to go with the decision. Sales talk is designed to break this iron clad resolve.
Choose the Right Lender – Though, each lender claims to offer the loan at competitive interest rates with added benefits, it is thus, your responsibility to choose the right lender who has a good reputation in the market.
Understand Each Terms and Conditions – Most of the times, people skip to thoroughly read and understand the lengthy terms and conditions. This will save you from getting into conflicting condition in the future years.
Don’t Borrow More Than Your Repayment Capacity – Even though you might have a need of higher loan amount, it is not a good deal to borrow personal loan more than your repayment capacity. Applying for a higher loan amount also increases the chances of your application getting rejected.
Check Your Eligibility – There are a bulk of online and offline platforms where you can self check your eligibility criteria for the loan. This will save you from getting multiple loan quotes, which can affect your credit score and lower your creditworthiness.
Wait for 6 Months Before Re-Applying – Try to maintain a gap of at least 6 months before re-applying for a personal loan which was earlier rejected due to low credit score. Work on your score during these months to ensure you get the loan approval easily. Multiple loan applications simultaneously can cause your CIBIL score to drop.
Maintain A Good Credit Utilization Ratio – Credit utilization ratio determines the borrower’s available credit and how much percentage of it is currently being utilized. Thus, it is calculation that represents borrower’s credit habit and creditworthiness to get the loan. A borrower’s credit utilization ratio might vary from time to time; it is suggested to maintain the ratio between 40 to 50%.