Apply for Personal Loan

4 Most Important Personal Loan Queries Addressed

Personal loans are highly resourceful financial tools but they come with their share of misinformation and doubts. In the subsequent sections, we shall take up 7 such queries that individuals usually have whilst answering them in the least possible words.

  1. Where to get the loan from?

It is always advisable to connect with a credible NBFC for getting a personal loan. However, we would prefer online providers over the typical offline sources. For instance, even a Mumbai-based NBFC that is active online can cater to individuals seeking personal loans in Hyderabad or anywhere in Indi, sans hassles.

  1. Is Online Procedure Tricky?

Online loan applications are usually processed in no time as relevant providers verify credentials and credit history in a matter of minutes.

  1. Which documents are usually required for procuring a personal loan?

In case you are planning to get a personal loan from conventional sources, it is necessary to furnish income proof, photograph, residential proof, personal ID, and even employment proof. These documents help speed up the loan disbursal process.

  1. Is it possible to get a personal loan at lower interest rates?

Contrary to popular belief, personal loan interest rates aren’t always exorbitant. Instead, if you play your cards right and look properly; you can end up getting a more affable personal loan with a lower interest rate and easy repayment options. Besides, a personal loan is still always cheaper than a credit card, precisely when interest rates are concerned. 

Now what you have answers to some of the more crucial loan-relevant queries, you can take your pick and select the preferred credit line as per requirements.

Must Read: All you need to know about Pre-Approved Personal Loan in India

How To Do Financial Planning For Weddings With A Personal Loan?

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Weddings are an elaborate affair with too considerable expenses on dress, decoration, food, venue and much more. Financing all this from your savings account can be a daunting task. It is where a personal loan can play a crucial role.

How to Plan for a Marriage Loan?

You may have meticulously planned every wedding detail, but have you given a thought on how to manage all the expenses? Here are a few essential things to consider before taking a marriage loan:

  1. Start early: Instead of waiting for the last moment, start planning your wedding expenses in advance. It will give you an estimate of the loan amount you require and arrange the documents required for the personal loan to cover wedding expenses.
  2. Avoid unnecessary expenses: Since there is substantial interest payable on a personal loan, you will avoid reckless expenditure on the wedding. 
  3. Don’t exhaust savings: Under no circumstances should you use your savings for your wedding. The personal loan will help keep your savings intact for emergency expenses. 
  4. Avoid paying hefty interest: If you are borrowing money for a wedding, avoid using your credit card or other overdraft facilities to create debt that comes with a high-interest rate. 
  5. Invest smartly: If you have savings, use the money to invest in mutual funds or other high paying instruments. It will help you to cover your loan cost. 

Wedding is a special day for both the bride and groom. Everyone tries hard to make their dream come true. But it is essential to take care that the dreams do not drill a hole in your pocket.

Also Read: 5 Tips to Manage Expenses of Marriage in a Simple Way

 

Apply for Online Personal Loan in 5 Easy Steps

India has witnessed several changes in the last couple of decades, especially in the financial sector. With rapid digitalisation, everything has now shifted online, ditching the age-old lending system. With all the services online, one can now enjoy all the financial services from their homes’ comfort.

Are you looking for funds to finance your daily needs or family emergencies? Now you can get instant personal loan online. There are various lenders available online to choose from.

Apply for an online personal loan

To apply for an online personal loan, follow the steps mentioned below:

Step 1: Visit the lender’s website and browse over to the personal loan page.

Step 2: On the web page, click on the ‘Apply Now’ option. You will mention your mobile number for verification and choose whether you are a salaried individual or a self-employed professional.

Step 3: Fill the loan amount you want and the preferred repayment tenure. You can use the personal loan EMI calculator to know the monthly financial strain you will face in repaying the loan.

Step 4: Once the eligibility check is complete, fill in all the details in the application form. You will be required to mention your personal, professional and banking details.

Step 5: Upload the required documents for e-KYC and loan approval. Click on the submit button.

Based on your details mentioned, a customer care executive will call you to provide you with the loan amount, interest rate and tenure for which loan is available to you. On your approval, the loan amount will be directly transferred into your account.

Must Read: What is the concept of Prequalifying For Personal Loans? Learn here

4 Ways to Get a Better Interest Rate on Personal Loan

A personal loan has become the best financial tool currently to finance all your emergencies and expenses. However, as it is an unsecured loan, the interest rate payable for a personal loan could hold you back when you think to yourself, “I need a personal loan .”

Well, do you know there are ways through which you can get a better personal loan interest rate? Some of the tips are shared below:

1. Credit Score: A credit score over 750 is a great way to get an instant personal loan at competitive rates. A high credit score can help you in getting better interest rates on personal loans from lenders. It is also important that your credit utilization ratio stays under 30%. 

2. Stay aware of the market: Before applying for a personal loan, make sure to do your market research properly and then opt for the lender offering the best interest rate. 

3. Make timely repayments: The repayment history considered is not just for the current loan but also for all the loans you have taken in the past. A good repayment history reflects well on your profile and helps you get a lower interest rate. 

4. Working with a good employer: Your employer also impacts your interest rate. Working with a Fortune 500 company or an MNC makes your profile strong, helping you grab a lower interest rate on a personal loan.

These are some simple ways of getting a personal loan with a better interest rate. A good relationship with a reliable lender in the market can further strengthen your case for a loan at a reasonably low rate of interest.

Must Read: 9 Simple Tips To Increase Your CIBIL Score In India

How The Approved Personal Loan Amount Is Related To Your Salary?

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Regardless of the personal loan amount you apply for, the lender only approves for the sum that is in sync with your salary. NBFCs and other financial institutions believe that it might be hard for a borrower to repay the amount as monthly EMIs if the figure closes in on the overall income. For More Details Visit here: https://www.fullertonindia.com/personal-loan.aspx

Therefore, it is important to understand that the salary-related aspect and other factors can impact your eligibility if you plan to apply online for a personal loan.

  • Total Income

Lenders evaluate your primary and secondary income before approving a certain sum. However, to increase the chances of approval, it is advisable to evaluate eligibility and apply for a lesser figure.

  • Professional Stability

A higher income is of no use if you have an erratic professional standing. Therefore, job stability is also a factor that lenders take into consideration. The best way to depict the same is by showcasing the appointment letter and minimizing job changes.

  • Debt-to-Income Factor

Loans might get rejected if you have multiple liabilities to take care of. Creditors believe that a higher ‘debt-to-income’ ratio renders the credit profile riskier than usual.

  • CIBIL Score

If each of the mentioned aspects is in line within permissible limits, it finally comes down to your CIBIL score. Despite higher income and perfect personal loan documents, lenders keep a close eye on your credit profile when it comes to approving on rejecting loan applications. 

Getting approval for a particular loan amount depends on adherence to the mentioned aspects, with your salary having a massive bearing on the process.

Additional Read: How Technology Has Changed the Way we applying for personal loan

Things To Consider Before Prepaying A Personal Loan

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If you are considering an option to pay off the personal loan before the repayment tenure, there are quite a few things that you need to consider. While the feeling of financial stability upon prepayment might be tempting enough to consider, never proceed with the same unless the following aspects are taken care of:

  • Type of Personal Loan

If you check personal loan eligibility and eligible to apply for a loan after, the thought of prepayment should focus on the interest rates, penalties on overdue payments, and foreclosure charges, if any. For instance, it is always advisable to pay off a revolving loan like a credit card to ensure debt riddance, as quickly as possible.

  • Prepayment Caveats

If your lender is known to levy heft foreclosure charges, it isn’t advisable to prepay the loan early, and that too if you are nearing the end of the tenure. However, if you have taken a long-term loan and prepayment with foreclosing penalties is more financially viable than the accumulating interests, consider paying off the loan at the earliest.

  • Payment Methods

Now that you have made up your mind about paying early consider the best method to go about the process. In most cases, individuals consider debt consolidation where they get rid of the highest interest loan with a more affordable credit line. 

However, before you can even consider an early payment, it is necessary to accumulate the documents required for a personal loan to get a better clarity into the process. 

Regardless of the approach, prepaying strategically can also improve your credit score, in the long run. 

Must Read: Re-Applying For A Personal Loan? Here are 5 Things To Consider

Multiple Personal Loans: Advantages And Disadvantages

A personal loan is a one-stop solution to all your expenses, whether they are costs related to medical emergencies, wedding expenses, house renovation, or higher education. 

The personal loan eligibility criteria can be met easily with minimal documentation with no restriction on availing multiple personal loans. 

So, before planning to avail multiple personal loans, let us have a look at the advantages and the disadvantages-

Advantages of Multiple Personal Loans-

  1. Improves Your Credit Score

If you are to repay the loans within the repayment periods, multiple personal loans can be a smart way to enhance your credit score. 

  1. Swift Response

Multiple personal loans are the best option in situations where you need to take care of multiple expenses, and you are out of finance to cover them. 

  1. Flexibility

Higher the credit scores, higher are the benefits of multiple funding sources that can help the borrower in meeting the financial requirements effortlessly.

  1. Security

If you are into a business that needs continuous funding, taking up multiple personal loans can be easily used to secure the finances of your business.

Disadvantages of Multiple Personal Loans

  1. To pay for all the monthly instalments, you will need a steady income that can accommodate all your liabilities.
  2. You need to repay the loan without any failure, or you might end up with a bad credit history.
  3. To repay multiple loans, you might need to cut down on luxury or even necessary expenses.

Conclusion 

Now that you have all the information about multiple personal loans, you can go ahead and check your eligibility using a personal loan calculator and apply for it. 

Must Read: Get a Personal Loan for Women to Boost Your Financial Profile