personal loan rate

Why Should You Maintain A Good Credit Score While Applying For Personal Loans?

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Are you applying for a loan? Have you checked your credit score? It is the most vital thing your lender will check while processing your application. 

Maintaining a good CIBIL score should be your topmost priority. How to go about it? Repay all your loans and credit card bills on time. Also, make sure you have minimum pending loans while applying for a new one.

Importance Of A Good Credit Score

  • It Increases The Chances of Your Loan Getting Approved

A good CIBIL score convinces the lender about your credibility. It tells them about your repayment capacity. Since personal loans are unsecured, your credit score is the only assurance your lender has. So, they are more likely to approve your application.

  • You Can Avail Lower Interest Rates

The rate of interest your lender charges depends on your credit score. Having a higher score will give you more bargaining capacity. It will let you get a better deal.

  • You Can Also Avail Other Offers

Once your lender sees a high credit score, they will start valuing you more. Who knows? You might also be able to get some exclusive offers.

Getting an NBFC personal loan has become easier these days. However, you need to take care of your CIBIL score.

Final Score

Fullerton India lets you check your credit score instantly. You can apply online and get quick approval of your personal loan. So, check your score now and assess your eligibility.

Additional Read: How you can calculate Credit Score? And How To Boost It?

How To Choose Personal Loan Tenure Smartly?

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While a personal loan is a great tool to get instant funds, it is important to manage it properly to ensure that it does not impact your finances. For management, there are three main factors: Loan amount, interest rate, personal loan tenure. (Checkout personal loan Interest rate here)

While the loan amount and interest rate are in the hands of the lender, you can choose the loan tenure with some simple tips. 

Tips to Follow While Choosing Personal Loan Tenure:

  • Assess your monthly budget:

One of the biggest factors which will help smartly planning the loan tenure is understanding your monthly budget. Take a note of your monthly commitments, bills and the earning, it will give you a better idea of how much EMI you can pay.

  • Evaluate your existing liabilities:

You must evaluate your existing liabilities, another factor, must be looked into is your existing liabilities.

  • Use an EMI calculator:

If you know the loan amount, the interest rate, the EMI calculator will help you in calculating the loan tenure. An EMI calculator is a key tool that must be used while choosing personal loan tenure.

  • Assess your financial aspects:

Whether you are a salaried individual or a businessperson, make sure to assess your monthly burden, to accommodate a higher EMI every month.

  • Calculate the interest cost:

Once the interest rate has been fixed, calculate your interest cost. The more the tenure, the more will be the interest you pay. So, make sure to optimise your interest cost, by using various combinations of tenure options.

Conclusion

A personal loan is one of the easiest financial tools in times of emergencies, however, it is important to maintain a strict repayment routine to ensure that it does not become a financial burden. So choose your loan tenure wisely.

Additional Read: Close your high interest loans by taking a personal loan from Fullerton India