How to Manage Your Finances Alongside Personal Loans?

For immediate funding requirements, Personal Loans are the most preferred funding options. Right from application to disbursal, the loan process is straight and simple. Aspiring borrowers nowadays apply for Personal Loans online anytime and anywhere they need.

However, borrowers should have a financial plan, especially during their loan repayment tenure, to avoid any defaults. Let us see the best practices you can follow to manage your finances alongside a Personal Loan.

Monitor your debt-to-income (DTI) ratio: The DTI Ratio measures the percentage of your income used to repay debts. Maintaining a DTI of less than 36%is considered ideal, and debt repayment becomes more challenging when your DTI is between 36% to 50%. Anything above 50% is unhealthy and can result in defaults or the need for additional funding.
Keep an eye on expenses: Each expense should be assessed from the lens of what income you are generating. The income should be used for necessities, repaying debt obligations, and savings before indulging in any other spending.
Quick repayment: Many lending institutions allow you to foreclose the loan by repaying through lump sums in addition to your equated monthly installments. This way, you can repay the loan ahead of its actual time. Also, you should repay high-interest loans earlier to reduce your overall debt costs.
Timely repayments: Defaulting on the stipulated periodical repayment can attract penalties and potentially impact your savings. Hence, timely repayments are advised, and it also improves your credit score.

Conclusion:

Any loan is a liability for the borrower until it gets repaid. Before applying for a Personal Loan online, you should have a financial plan covering the loan repayment tenure. The Personal Loan requirements are simple; however, the repayment needs meticulous planning.

Why use a Personal Loan EMI Calculator?

A personal loan EMI calculator is a digital tool for online calculations that banks and other financial institutions provide on their websites. Using a personal loan calculator, you may quickly calculate your loan EMIs.

You can plan your finances using this personal loan calculator to determine the amount you will pay for the loan. To use this calculator, you should enter variable numbers such as the loan amount, offered personal loan interest rates, and the preferred repayment tenure.

Why Should You Use a Personal Loan EMI Calculator?

#1 It’s Easy to Use and Cost Nothing

A personal loan calculator can be used without any technical expertise. You need to enter a few variable values to achieve the required outcomes, making it straightforward to use. Additionally, it is accessible online and is free to use.

#2 Anyone can use it

There are numerous platforms where you can get a personal loan EMI calculator. You can find it on the lender’s website or mobile app operated by reputed lending institutions. Additionally, you can access it at any time of day and any number of times. You can still use the calculator even if you haven’t applied for a loan yet.

#3 It Provides Accurate Responses

You should not worry about if the results of a personal loan calculator will be accurate. A personal loan calculator consistently produces results that are accurate and error-free. With a personal loan calculator, you can easily find your EMI without tedious manual calculations.

A personal loan calculator can give you crucial information about your loan, so you should always use it before applying. Additionally, it can help in choosing a suitable tenure. Remember that the figures shown by the calculator are only indicative and may change.

9 Reasons to Choose a Personal Loan in India

Whenever someone needs funds to cover a big-ticket expense, they look towards a personal loan for financial support. However, have you ever wondered what makes personal loans the favourite funding option among borrowers? Let’s look at a few reasons to choose a personal loan in India.

Ample Loan Amount: A personal loan offers generous loan amounts to eligible applicants.

Easy to Apply: Compared to other loan types that require several lender visits, personal loans are easy to apply from the comfort of a laptop or smartphone. Most lenders support 100% online loan applications these days.

Reasonable Interest Rates: Lenders determine each applicant’s personal loan interest rates reasonably according to their income, DTI ratio, credit score, and other parameters.

Simple Eligibility Criterion: Personal loans have easy eligibility criteria, including the applicant’s age, income, DTI ratio, employment, credit score, and other easy-to-fulfill conditions.

Minimal Documentation: NBFCs sanction personal loans at minimal documentation requirements. They require identity, income, and residence proofs to verify the applicant’s credentials and approve loans within minutes.

Collateral-Free Loans: Personal loans are unsecured loans that applicants may avail of without any guarantor, security, or collateral.

Flexible Repayment: Flexible repayment means applicants may select their loan term from a few months to multiple years with EMIs suitable to their monthly budget.

Fast Approval: Online loan procedure, no collateral involved, and paperless documentation are a few reasons why lenders can now approve loans within minutes.

Quick Disbursal: Once approved, many lenders disburse the loan amount directly into the applicant’s bank account within 24 hours.

These reasons make personal loan offers the most hunted finance options in India.

Must Read: Know How the personal loan EMI calculator can help you to manage your Big expenses

Crucial Factors that Lenders Consider While Evaluating Loan Applications

NBFCs have made personal loans easily accessible these days with online application procedures. Many have easy eligibility criteria, minimal documentation requirements, and flexible repayment terms to keep things easy for the borrowers. However, they look at several crucial factors while evaluating loan applications, including the following:

Age: The applicants should be in their prime earning years at the time of personal loan application, preferably not at the beginning or end of their career.
Income: Lenders want to ensure sufficient monthly earnings to support timely EMI repayments.
Employment: An applicant who changes job frequently is a high-risk borrower for the lender. So, they prefer borrowers with a steady job, regular income, and enough work experience.
Credit Score: A credit score indicates an applicant’s repayment history and past credit behaviour. Most lenders expect a credit rating of at least 700-750. Applicants with a high credit score often get a high loan amount with a lower personal loan interest rate.
Financial Obligations: Even if the income is high, the borrowers may miss payments if they have several other expenses to cover each month. Lenders usually prefer applicants with a debt-to-income ratio of less than 30-40%.
Savings: Circumstances may change, and the borrowers may find themselves unable to pay the EMIs. Incidents like job loss, death, or divorce may cause a financial crunch, forcing the borrower to default on a loan. Therefore, lenders want to ensure enough savings to support EMI payments during challenging times.

These are a few crucial factors lenders check while evaluating a personal loan application. Look at them carefully and improve your eligibility while keeping these points in mind.

Additional Read: पर्सनल लोन पर जल्दी से मंजूरी पाने के लिए 5 आसान टिप्स!

Steps to Apply for a Personal Loan

Thanks to digitisation, getting a personal loan has become instant. These loans are perfect for handling emergency expenses. Personal loans do not need collateral and can be availed by involving minimal documentation. One can apply for an instant personal loan online through lender websites or mobile apps. Let’s check how

Steps to Apply for a Personal Loan:

Log in to the app/ website.
Register using the OTP verification.
Click on the personal loan application form and fill in the basic details required.
Scan and upload the requested documents. Collating these documents beforehand ensures quick submission.
Submit the application.

Once these steps have been followed, the app/website immediately notifies the applicant of the loan eligibility. After that, the lender calls the applicant to further the process by explaining the terms. On accepting the terms and conditions, the lender verifies the documents. Once the records and information provided are verified digitally, the loan is sanctioned within 24 hours. The loan amount is then disbursed to the borrower’s bank within the next 30 minutes. Following these easy steps accelerates the personal loan process and also makes applying for the loan easier.

Before applying for a personal loan, it is imperative to check if you meet the eligibility criteria laid out by the financial institution. Lenders reject applications that do not meet their eligibility criteria. Choosing the financial institution that offers lower interest rates based on the current personal loan interest rates is also important. Keeping in mind these factors will make your monthly payments affordable, and you can repay the loan quickly.

Additional Read: Complete Guide to Personal Loans for Women

Complete Guide to Personal Loans for Women

Many female entrepreneurs apply for personal loans for women to meet their financial requirements. These loans are available at low-interest rates and flexible EMIs. The eligibility criteria for availing of such loans include income levels, salaried or employment status, and the borrower’s age. Below listed are the advantages of availing personal loans for women.

Advantages of Personal Loans for Women:

Commencement of Business

A percentage of the working women population is shifting from high-income job positions to entrepreneurial development. Personal loans play an important part in promoting the position of women entrepreneurs in the startup ecosystem. Personal loans offer various benefits, including minimal documentation, flexibility of usage, and quick disbursement.

Accessibility to Financial Services

Accessibility and good quality financial services are important factors leading to the enhanced importance of personal loans. Women are often subjected to financial access barriers restricting them from participating in the economy. In such situations, personal loans help women achieve much-needed financial independence.

Investment Opportunities

Investment is the key to starting ventures. Personal loans aid in the availability of finances and resources to the women populace to set up businesses or expand the already existing businesses. Furthermore, the funds from such loans can be used for investment in any field, including real estate, mutual funds or government securities.

There are various factors such as interest rates, repayment options, loan tenures and reputation of the lender that one must consider before applying for a personal loan. Get in touch with Fullerton India to avail of personal loans at flexible repayment tenures and attractive interest rates.

Must Read: Things to Keep In Mind While Availing A Personal Loan To Pay Credit Card Bills

All About Personal Loan Balance Transfer

A personal loan balance transfer is the process of transferring your existing outstanding personal loan from the current lender to the one that offers lower interest rates. In simple words, a new lender will repay your existing personal loan, and you can continue to pay your loan EMIs to the new lender at lower interest rates. Does it sound like a good deal? If you are caught in a loan with the highest interest rates, you can consider a personal loan balance transfer.

Why should you think of a personal loan balance transfer?

Reduced Rate of Interest

Many borrowers opt for personal loan transfer mainly because of its lucrative interest rates. Not only the interest rates, but many lenders also offer the best deals in miscellaneous charges. Lowering the interest rate will proportionately lower your monthly expenses, thereby helping you close the loan sooner.

Extended Loan Tenure

By transferring your loan balance, you can negotiate the loan tenure with the new lender after reevaluating the loan based on your current budget. Suppose your existing loan is burdening your finances. In that case, you can opt for a longer tenure to obtain a smaller EMI. Likewise, if you are better positioned to pay a higher EMI, you can shorten the term and repay the loan sooner.

For Attractive Benefits and Upgrades

A borrower switches to a new lender when they find the offers more lucrative than the current one. Most lenders offer deals in the form of lower interest rates, zero processing charges, zero prepayment charges etc., customized based on your credit profile.

A Top-Up on Your Existing Loan

If you have a good credit score, you can even use the balance transfer as a debt consolidation loan by opting for top-up loans above the current loan at lower interest rates.

Apart from these, a loan transfer on any type of loan eases your debt burden if you currently pay higher personal loan interest rates. Evaluate your choices and choose an established NBFC to opt for a home loan balance transfer and avail of its benefits.

Must Read: 5 Reasons why To Choose a Personal Loan Over Another Type of Debt

How Does A Personal Loan Balance Transfer Work?

A personal loan balance transfer is a scheme where customers can transfer their outstanding personal loan to another lender who offers a better deal. While opting for a personal loan balance transfer looks lucrative, it is necessary to carefully evaluate if it is beneficial to you. Personal loan balance transfer comes with a penalty from your existing lender and attracts processing fees from the new lender.

How does a personal loan balance transfer work?

When you transfer your outstanding personal loan to a new lender, they will pay off your existing loan with the current lender. However, you will be liable to pay the prepayment charges if your existing loan terms have a prepayment clause in it. Calculating all costs can help determine your savings from the loan transfer, and this calculation can be quickly done using a personal loan prepayment calculator available online.

Is personal loan balance transfer a good idea?

It depends on your current financial institution’s fees while transferring the loan. However, there are several benefits of a personal loan balance transfer.

Let’s understand:

Lower Rate of Interest,

The most significant advantage of a loan balance transfer is that the borrower is offered lower interest rates.

Extended Repayment Period

On transferring the loan to the new lender, one can negotiate to extend the loan repayment tenure, decreasing the monthly EMI commitment.

Loan Top-up Facility

You can also meet your additional fund requirement at the lowest interest rates with top-up facilities offered by the new lender.

Improved CIBIL Score

Since the loan transfer makes EMI affordable, you can repay the loan sooner and within the due date. This will drastically improve the CIBIL score.

If you plan to go ahead with the balance transfer, it is important to evaluate all the pros and cons to make an informed decision. You should also choose the lender who offers utmost transparency while providing lower interest rates.

Must Read: 5 Typical Personal Loan Requirements to Know Before Applying

Important Tips for Personal Loan Repayment

Personal loans repayments can be smoother if it is planned well. So here are a few tips for saving yourself from repayment hassles or financial burdens. Let’s check it out.

Do Not Delay Repayments

Late payments attract hefty penalties, and these penalties will unnecessarily burden your pocket and bring down your credit score. Hence planning your repayment schedule using a personal loan EMI calculator can help with missing out on repayments due to higher EMIs. Additionally, activation of auto-debit payments with the lender will help you repay loans on time without worrying about missing the timelines.

Do Not Overborrow

Personal loans are unsecured loans and hence come with higher interest rates. Calculating the exact requirement in advance will help you not to pay interest rates unnecessarily for an amount you never required. Proper planning can help you save a lot of money and repay without hassles.

Opt for a Reasonable Tenure

Longer tenures with lower EMI may look attractive, and however, they attract higher interest rates. Choosing the shortest tenure possible based on your affordability can help save on the interest rates. Though shorter tenure attracts larger EMIs, the loan can be repaid in less time.

Make a Financial Budget

Prepare a budget and list down all your expenses, debts, and standard commitment and expenses on one side with your income from all sources on the other. Do a judicious study to map your expenses with your income and keep enough savings in hand to pay for a minimum of 6 EMIs if you ever run short of money or have to manage without an active income source. Make sure you stick to that budget for effortless debt repayment.

Following the tips mentioned above can assist in making your repayment smoother without causing any financial stees to your budget.

Must Read: 5 Reasons to opt a Personal Loan for Home Renovation

5 Proven Tips to Get Your Personal Loan Approval Quickly

Personal loans are an excellent source of funds that can be beneficial during a financial crunch. The loans have a simple application process requiring minimal documentation. Though personal loans are user-friendly, getting approval for instant loans could be delayed if there are gaps in your application process. Hence here are a few pointers on how to speed up your loan approval quickly.

Check your Eligibility Criteria Before Applying

Applying for quick personal loans without meeting the lender’s eligibility criteria could lead to loan rejections. Loan rejections are bad for credit scores hence lowering chances of getting another loan in the same timeframe. It is also essential to check the maximum loan amount you can apply for using the lender’s loan eligibility calculator. This will help you not over quote the loan amount.

Check Your Credit Score Before Applying

Checking your credit score will help borrowers gauge their eligibility for the loan before applying. If your credit score is above 750, you can rest assured that your application will be swiftly approved. If your credit score is low, you can identify issues in your credit profile and improve it.

Do Not Apply for Multiple Loans

It could be tempting to apply to several lenders simultaneously to maximize the chances of loan approval. But in reality, this leads to application rejection. Too many applications will lead to multiple inquiries in the credit report, leading to a temporary drop in credit score and hampering your chances to get the loan.

Calculate your Loan EMI

Calculating your personal loan EMI in advance with the help of an EMI calculator will help apply for a loan tenure and EMI that fits your repayment capacity.

Apply online

Online loan applications are a quick and user-friendly process. The loan documents are digitally verified, which saves time. The loan application is also traceable online. Once approved, the funds are disbursed to your bank account.

Availability of quick personal loans is easy if you follow the above tips. The loan is an urgent requirement. But doing your research and correctly filling out the application form will ensure that you do not get any unpleasant surprises later.

Must Read: 5 Reasons to opt a Personal Loan for Home Renovation

Want a Personal Loan? Choose between Fixed and Floating Interest Rates

Before availing of an easy personal loan, you must understand the vital concepts of floating interest and fixed interest. Understanding these terms is essential as they can have a crucial impact on your EMIs. You can apply for personal loan here: https://www.smfgindiacredit.com/personal-loan.aspx

Fixed interest rate loans have an interest rate that doesn’t change during the loan term. It stays the same when RBI changes its policy. In this way, the borrower can accurately predict future payments. Those who do not want any fluctuations in the interest rates prefer fixed interest rates. If the market is at a falling interest rate cycle or an expected hike in interest rates soon, it is feasible and logical to lock the deal at the current lower fixed interest rate. But keep in mind that the fixed interest rates are 1-2.5% per month higher than the floating ones.

Floating interest rates reflect economic or financial market conditions by fluctuating or “floating” over time. The RBI determines the base rate and applies a variable element to arrive at the final rate. The last interest rate changes by default when the RBI changes the base rate. So, those willing to take market fluctuations as a challenge or have a good knowledge of the market can surely take up floating interest rates. Also, if the market is at the end of a rising interest cycle or you expect rate cuts to be announced by the RBI shortly, the only reasonable rate for you is fluctuating. It helps you enjoy a 1-2.5% lower interest. But it is subject to changes in the RBI’s policies.

So, considering the tenure and amount of your easy personal loan, choose the best loan offer.

Must Read: What is the Income Tax Benefits on Personal loan?

How Personal Loans Can Help You Pay Hospital Bills?

Medical emergencies always come unannounced, and often the expenses are expensive and could wipe out one’s savings. To obtain a high-quality treatment for critical illness, childbirth, IVF or a complete health checkup, one needs a decent amount of finances. Taking pre-approved personal loans can help you pay the hospital bills. Let’s check how.

Ample Funds to Cover

If medical bills are putting your financial stability at peril. It is recommended to take an instant personal loan for financial support. Personal loans up to 25 lakhs* can be availed at the lowest interest rates within 24* hours at just four clicks.

Minimal Documentation

The loan is customised to specific needs and does not require much documentation and waiting time. One can apply for the loan within minutes by filling in basic information, uploading scanned copies of documents required for personal loan and selecting a suitable scheme offered by the lender.

No Collateral

Personal loans do not require you to pledge any security in the form of collateral. It can be availed by meeting the eligibility criteria of the lender. So, you do not have to arrange for your asset proofs to avail of the loan amount,

Easy Repayment Process

Personal loans allow you to repay the loan in a flexible tenure of your choice. Flexible tenures lower the financial stress of paying the loan amount at a specific duration. You can calculate an affordable monthly EMI and an optimum tenure against it using a personal loan EMI calculator. This will help you arrive at an EMI that fits your budget.

Covers a Wide Range of Treatments

Personal loans can be used for medical debt consolidation. All the medical expenses from daycare charges, medicines, treatment costs and all the costs associated with the hospitalisation can be funded using personal loans,

Personal loans can help you sail through the tide regardless of your medical requirements. Good planning will help you repay your loan comfortably without compromising your regular expenses.

Must Read: Why Working Population in India opt for Personal Loans?

Follow These 7 Rules While Applying for a Personal Loan in Pune

Pune is a vibrant city with a population of around 9.4 million. However, with the increasing cost of education, healthcare, and other necessities in the city, many people feel short of money for their planned or unplanned expenses. This is where a personal loan comes to provide them with the required finance. While looking for a personal loan in Pune, these are the top 7 rules to follow:

Compare Interest: Use a personal loan interest calculator to know the interest rates offered by different lenders and find the cheapest deal.
Choose the Right Lender: Compare lenders in Pune based on their loan amount, interest rates, repayment terms, eligibility conditions, documentation requirements, and other parameters to find the most suitable one.
Check Eligibility: Although NBFCs have easy eligibility conditions for personal loans, you must check and fulfil them while applying for an instant personal loan to improve the chances of approval.
Borrow Minimum: Since you have to repay the borrowed amount along with the interest rate, borrowing minimum helps keep the loan cost low.
Choose the Right Repayment Term: Lenders have a minimum and maximum repayment term that you can select considering your repayment capacity and monthly budget.
Maintain a High Credit Score: Maintaining a credit score above 700 helps get loan approval at the lowest interest rate.
Apply Through App: Apply for an instant personal loan online through the lender’s app to accelerate the application and approval process without leaving your home.

Follow these top seven rules to improve your chances of loan approval and get the best interest rate. Use a personal loan interest calculator to plan your repayment on time.

Must Read: 5 Best Tips to Choose the Best Personal Loan

How to Choose the Best Quick Personal Loans?

personal-loan-1

Are you looking for a personal loan to fund your short-term money requirements? Here’s a quick guide to finding the best quick personal loans.

Check the Eligibility Criteria and Needed Documents

First things first, check if you’re eligible for a personal loan. Lenders can have different eligibility criteria for quick personal loans, but here’s what most lenders ask for:

Age: 23-60 years
Employment Status: Salaried at any recognized firm
Citizenship Status: Indian
Salary: Rs. 20,000 or more

Also, check the required documents. Most lenders will ask for your personal and financial details, such as your personal ID and bank statement.

Evaluate the Interest Rates

After confirming your eligibility, evaluate the interest rates. This is important because a small increase in the interest rate can have a substantial impact on the total loan amount. Almost all lenders have a personal loan interest calculator that lets you calculate the estimated loan costs.

Choose the Right Tenure

The next thing to consider is the loan tenure. The tenure you choose will depend on your loan amount and the EMI you’re willing to pay each month. A loan with a short tenure will have high EMIs and low-interest payouts. Loans with long tenures have low EMIs but high-interest payouts.

Consider Processing Costs

Lastly, consider the processing costs, if any. The loan processing fee oscillates between 0.5% and 2.5%. Look for personal loan providers that charge a low processing cost, so your total payable amount is less.

Quick personal loans are great for supporting your instant cash requirements. However, finding the right lender is important. Follow the steps discussed above to find the best personal loan.

Additional Read: Know how employment status affect your personal loan eligibility?

Access Funds Quickly with a Pre-Approved Personal Loan Offer

Pre-approved-personal-loans

If you urgently need cash for any emergency, then ‘pre-approved personal loans’ are the best option. A pre-approved personal loan is a customized offer to match your profile and needs.

A pre approved loan gives you the benefits of quick disbursal at the time of any emergency. The last two years have proved to be difficult for everyone, especially those who had to deal with unpredictable situations involving a cash shortage during emergencies. Pre-approved personal loans save your time and effort and significantly cut down the lengthy personal loan approval process by taking the applicant to the final stage. You can get the cash instantly without any trouble if your credit score is high, your income is higher to meet the loan repayment schedule, and you meet the lender’s loan eligibility criteria.

A pre-approved loan helps you save your hard-earned savings in case of any emergency.

What is a pre-approved loan?

A pre-approved loan is a collateral-free loan, also known as an unsecured loan.
It is similar to a personal loan and depends on the borrower’s creditworthiness. The lender provides you with the pre-approved loan amount based on your credit score and financial status in this loan category.

As your creditworthiness is pre-evaluated, there are no issues getting a quick disbursal. Once you furnish your basic and loan repayment details, you receive a pre-approved personal loan offer. The loan amount is instantly disbursed to your bank account on acceptance of such an offer.

CIBIL Score

CIBIL is a 3-digit numeric representing the applicant’s credit history, report, and overall rating. This score ranges between 300 to 900, showing the applicant’s creditworthiness. Cibil score for a loan represents the credit history of the borrower’s repayment of debts. A good CIBIL score lies between 700 to 900 and proves to the lender that the applicant is a least-risk borrower and can be trusted with sanctioning the credit.

When it comes to having access to pre-approved personal loan offers, your credit score and income play a catalyst role. If both these factors are high and favourable, it is highly likely to get approved for a personal loan.

Additional Read: 7 Must-Knows Benefits on Taking Loan Against Aadhar & PAN Card

Things You Should Know About Personal Loan Part Payment And Pre-Closure

personal-loan

Are you looking for instant cash? If yes, then a personal loan is the best option. You don’t have to pledge any asset or collateral as a bank guarantee in a personal loan. You can get easy personal loans if you are a salaried applicant or a self-employed individual with an adequate flow of regular income. The loan amount and approval are based on your credit score, eligibility, and salary amongst other crucial factors.

A personal loan is hassle-free and takes less time for approval. The best part of the personal loan is the pre-closure facility which can be helpful to avoid extra payment of interest rate. The lender uses the personal loan pre closure calculator to complete the loan closure and calculates the final amount.

Personal Loan Pre-closure Calculator

Use a personal loan pre-closure calculator to calculate the final amount you need to pay to the bank for loan closure.

Process of the personal loan closure procedure

You can save a lot of money if you do the pre-payment of your personal loan. Usually, personal loans have a lock-in period of one year; after that, you can pay the outstanding loan amount.

Here are some steps to follow to complete your personal loan-

Submit all your documents in the home branch from where you have taken the loan
Talk to your relationship official about pre-closure of personal loan
A DD or cheque will be accepted for the pre-closure
Collect your pre-closure acknowledgment receipt

At the time of submitting your personal loan application, always ensure that you know the lender’s loan pre-closure process and charges beforehand to avoid any surprises later.

Additional Read: How you Can Apply for a Personal Loan Balance Transfer?

How To Get A Personal Loan With A Low Credit Score?

Young man checking Credit Score on Tablet Pc

A low credit score can be troublesome if you want to get a personal loan. A personal loan is a savior in emergencies or when urgent requirements come up. You can use personal loans for a medical emergency, your dream wedding, an overdue holiday, or any other luxury purchase.

To receive a personal loan, you need to maintain a good credit score which is a mandatory requirement of most personal loan lenders. A good credit score represents your borrowing history and your credit handling capabilities. Disbursement of a personal loan with a low credit score is possible if you have to give proof of income and assure the lender about your credibility.

Here are a few things to keep in mind to get a personal loan with a low credit score

Submit proof of stable Income

If you have a poor credit score, you need to submit proof of stable income source, which will help you to get credibility in the lender’s eyes

Go for a small loan amount

Do not apply for a high loan amount as a lender may reject your application. With a low credit score, you should apply for a small personal loan amount.

Get a Guarantor

Bringing a guarantor on board can be helpful to get a personal loan.

Check for Errors

It may be possible that your credit score report contains errors; check for these errors before you apply for the personal loan.

Select a shorter tenure

Always select a shorter tenure to repay the loan.

A poor credit score may create a hindrance in getting the desired loan amount, but if you use the above-defined tips, a personal loan can be approved.

Must Read: Know how to get a pre-approved Personal Loan in India?

4 Ways to Get Low Interest Personal Loans

One of the smartest ways to handle a financial need is to get a low-interest personal loan. This way, you can manage your bookings for a holiday, your child’s wedding, or even be able to afford the home of your dreams. Getting a low-interest personal loan may seem like a struggle, but it’s not! You can easily calculate the EMI you will need to pay with the help of a personal loan interest calculator.

Here is how you can get a low-interest personal loan easily:

A good credit score is a must: The rule of thumb for a good credit score is the higher the credit score, the more chances you have of getting an instant personal loan. A good credit score ranges between 700 and 750. In addition, with a good credit score, you can negotiate with the lender without any difficulties.
Look for the best lender: There are numerous lenders available in the market. Your score will improve if you succeed in finding the best lender with the lowest rates and features. It will consume more time, but comparing personal loan lenders ensures you have made the right choice.
Grab seasonal and festive offers: Stay updated with the notifications lenders send you to get a more affordable personal loan. Out of those, some offers and discounts are limited-period, while some ask you to apply online during the offer period.
Choose according to your professionalism: If you are financially stable, your score will automatically improve in the personal loan interest calculator. You can use your competence to grab the best offer. In addition, your company’s reputation also aids a helping hand as the lender is assured you will make timely payments.

With these tips, you can improve your score and get an instant personal loan easily! Find more information and useful tips on hassle-free loans and handling your finances smartly on Fullerton.

Must Read: PERSONAL LOAN:5 IMPORTANT FACTORS TO CONSIDER WHILE CHOOSING THE RIGHT PERSONAL LOAN

Why should you opt for a personal loan?

These days, personal loans are becoming popular due to their flexible characteristics of requiring no collateral, fast approval, and minimal paper requirements. As a result, you can avail of a personal loan for any of your needs.

Salient Features of Personal Loan

Quick personal loans generally help you in situations of medical emergencies, education, or any other purpose. Besides being the most dependable option to obtain finances for your immediate requirements, taking out a personal loan has several other advantages, including:

Within 30 minutes of your application being approved, the money is credited to your account.
Depending on the credit amount, you can apply for a loan with a repayment tenure ranging from 12 to 60 months.
Minimum paperwork is required.

Steps to apply for a personal loan

Using the online application process, you can avail of a personal loan in a few simple steps-

On the top of this page, click the “Apply Now” button.
You need to enter your mobile phone number and indicate whether you are salaried or self-employed.
Next, an OTP will be sent to verify your mobile number.
This will send you to the following step to input the loan amount and select the payback term. You will also be requested to enter personal, employment, and financial information.

When applying for a loan, you can use our personal loan EMI calculator to determine an appropriate loan amount and reasonable EMIs within seconds. At Fullerton India, you get easily manageable EMIs with fair interest rates and flexible payback deadlines!

Must Read: How Wedding Loan Can Help You With Your Child Wedding

Get a Pre-Approved Loan in a Few Simple Steps

Personal loans are granted to existing customers with a solid credit score and a history of timely repayment. You can apply for a personal loan for any purpose, including higher education, medical emergencies, or any unplanned events. It necessitates the bare minimum of papers and demands no collateral or security.

All you need to be eligible for a pre-approved personal loan is a strong credit and payback history.

Features of a Pre-approved Personal Loan

Quick Funding- Once the application verification process is complete, the loan will be approved and disbursed the same day within a few minutes.

Flexible repayment options- You have the option of choosing a loan repayment time that is convenient for you. It usually lasts anywhere from 12 to 60 months.

Competitive interest rates: Since you don’t fall into the credit-risk group, your clean payback record demonstrates financial discipline. You get the opportunity to avail the pre-approve personal loan at a competitive interest rate.

Documents Required for A Personal Loan

The filled-in personal loan application, along with a recent photograph.
Proof of Identity like Aadhar card, Passport copy, Driving license, etc.
Proof of age, such as a PAN card or a birth certificate
Proof of address, such as a ration card, a rental agreement, or a phone bill.
A bank statement or passbook with a record of the previous six months’ salary or three months’ salary slips.
Income tax returns
A cheque for the processing fee (Form 16).

Must Read: Step by Step Guide to Get a Fullerton India Personal Loan

Everything You Need to Know about Personal Loan Requirements

A personal loan can help you meet any financial expenses, whether a wedding, travel, debt consolidation, or home renovation. This is an unsecured form of credit that is gaining popularity due to its flexible features and ability to offset temporary crises or needs. Fullerton India has made the process simple so that you can get your loan approved within minutes.

Personal Loan Requirements

While planning to avail of a personal loan, the first thing that comes to our mind is the personal loan requirements. Following are the personal loan requirements which you need to keep a digital copy of while applying online for a loan –

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Identity and age proof
Address Proof such as Electricity Bill, or Passport
Latest salaries slip as a Proof of Income
Bank statements

You will be required to upload these documents to complete your application for a loan.

Personal Loan Eligibility

You need to check some criteria to find out whether you are eligible for a personal loan. They are –

You may apply for a personal loan if you are an Indian citizen or resident aged 21 to 65 years.
You are a self-employed or salaried individual earning more than Rs. 20000 per month.
You cannot apply for a personal loan if you do not meet the above criteria.

Fullerton India provides personal loan interest rates that start from 11.99% for self-employed or salaried persons for a minimum tenure of 60 months. Depending upon our policies and based on your requirements, we decide the suitable loan rates applicable. You can then decide your monthly budget accordingly to pay your EMIs easily.

Must Read: Step by Step Guide to Get a Fullerton India Personal Loan

All You Need to Know to Apply for a Personal Loan

A personal loan is money you borrow to serve any personal needs. For example, the personal need could be consolidating debt, paying for home renovations or medical bills, planning a dream wedding, or other expenses.

With Fullerton India, you can avail of easy personal loans up to 25 lakhs within the minimum interest rate just in a few minutes! The documentation procedure is simple and easy. Fullerton no-collateral personal loan is available to salaried and self-employed people with no hidden fees. Also, our online calculator can tell you if you’re eligible for a personal loan in a matter of seconds.

Benefits of a Personal Loan

You can apply for a personal loan for any of your purposes.
Fast Approval.
Low Rates of Interest as compared to credit cards.
No guarantor or collateral is required.
Easy documentation.

Personal Loan Eligibility Checkpoints

While seeking a personal loan, you need to fulfill a few criteria, which includes-

If you are an individual between 21-65 years of age.
You are salaried or employed and earn a salary of more than 25000 if you live in Delhi or Mumbai. Otherwise, a monthly income of 20000 is the bar you need to apply for a personal loan.
You have a CIBIL score of 750 or above. EMI of loan cannot be more than 60-70% of an individual’s monthly salary.

Once you meet the criteria for applying for a personal loan, you can apply for the same, and the amount will be credited to your account within 30 minutes of approval!

Must Read: 5 Things you Must Know Before Availing Personal Loan in Pune

Deal with Unexpected Expenses through Fullerton Personal Loan

Now you can easily take care of all your incidental and sudden expenses through affordable personal loans at Fullerton India. You can get personal loan interest rates as low as 11.99% per annum.

Fullerton India offers a clean and transparent online documentation process to both salaried and self-employed individuals. You can also calculate your profile eligibility for a personal loan at Fullerton India online using the personal loan eligibility check calculator.

What is a personal loan?

A personal loan is an unsecured amount that is borrowed for meeting certain unexpected expenses. Borrowers pay the amount back in monthly installments over a period typically ranging between 3-6 years. You simply have to select the ‘personal loan online apply’ option on the official Fullerton India website and fill in your details.

Fullerton personal loan eligibility criteria

The applicant must be a salaried employee or self-employed.
The applicant must have a minimum monthly income of INR 20,000. The amount is INR 25,000 if the applicant resides in Mumbai.
The applicant’s minimum age should be 21 years when applying for the personal loan, and the maximum age limit should be 65 years by the time of maturity of the loan.
The applicant must be a resident of India.

Keep all your documents ready and select the ‘personal loan online apply’ option on the official Fullerton India website and fill in your details. You can also check your eligibility at the online personal loan eligibility check calculator on the Fullerton India website.

Must Read: 5 Things you Must Know Before Availing Personal Loan in Pune

Apply Online for Personal Loan at Fullerton India – Steps for Instant Loan Application

Getting a personal loan just got a lot easier with the online personal loan application feature. A personal loan is unsecured, and you can apply for it even if you are self-employed. Fullerton India offers customized personal loan plans for customers. All the stages of the application process are paperless. Once your loan gets approved, the loan amount is credited to your account seamlessly and in a short duration.

Steps to Follow for Personal Loan Application

You can use an online personal loan interest rate calculator to check your financial eligibility for applying for a loan.

Click on the ‘Apply Now’ button on the top-right corner of the Fullerton India home page.
Select the ‘Personal Loan’ option from the section.
Next, you should mention whether you are ‘salaried’ or ‘self-employed.’ If you select ‘self-employed,’ you will have to classify the business type further and submit the business documents as proof.
When you select an option, you will be required to put in your mobile number and enter the OTP sent to your number.
In the next step, you will have to enter the loan amount that you wish to borrow.
You will also be asked to select the preferred payment method.

You can get personal loans for up to Rs. 25 lakhs. This collateral-free personal loan has no hidden charges, making the loan application process transparent and simple to follow. Make sure to check the terms of eligibility and calculate your profile eligibility using our personal loan interest rate calculator.

Must Read: 5 Reasons to Take CIBIL Score Seriously While Availing Personal Loan

Things you Need to Know When Availing a Contactless Personal Loan Online

With the increase in the use of the internet and technology, the need to avail of loans in person has become redundant. Standing in the long queues for your loan applications have become a thing of the past. Today, you can now apply for a personal loan at the ease of your fingertips.

When you can take a personal loan online, it eases the process and makes it faster. If you are looking for a personal loan, apply online on your preferred company’s website.

However, here are a few things that you must know when applying for a contactless personal loan online:

Are You Eligible?

The first thing to know is the loan eligibility, which is determined by the age, income, and nature of the applicant’s employment. Furthermore, the credit score also plays a crucial role. Therefore, it is also considered alongside various documents required for the personal loan to be approved, such as PAN card, Aadhar card, etc.

Documents Required

While many kinds of personal loans are available at your disposal, most loans share a commonality in the documents required. The documents required for a personal loan are mostly proofs of identity, address, income and proof of employment. These documents ensure that you are capable of paying back the loan amount on time.

Compare Before You Choose!

If you choose a personal loan and apply online, you can also compare the interest rates between the lenders on their respective websites. Furthermore, if you do not have the digital copies of the documents required for the loan, you can easily scan and upload them.

Must Read: LOOKING FOR A PERSONAL LOAN? HERE ARE A FEW KEY THINGS TO CONSIDER

What to do if Your Personal Loan is Rejected

If you have been trying to avail of a personal loan but have been rejected by a financial institution, there are still some things that you can do. There are some steps that you can take in order to reapply for the loan and increase the chances of your loan getting approved.

A personal loan instant approval is difficult because a personal loan is an unsecured loan. There are several criteria that financial institutions use to check how eligible you are for a loan and what your ability to repay the loan is.

Why was the loan rejected?

The first step would be to inquire why the loan was rejected by taking the loan rejection letter from the financial institution that you applied to. Usually, this is given in about 30 days. From this, you can find out which factor caused the rejection, like an unsteady income, because you applied for a personal loan without documents, a low credit score, or a problem with the age limit.

What is your credit score?

For unsecured loans, credit scores are important criteria. Therefore, you need to work on increasing your credit score before reapplying for the loan for personal loan instant approval.

What is your debt to income ratio?

If your loan was rejected due to insufficient income, it might be necessary to look for loans available to people in different income brackets.

Did you get your documentation right?

While some places offer personal loans without documents, there may be certain criteria for a particular financial institution that you may have missed out on. Thus, checking your documents and their status before reapplying is integral.

What are your other options?

If you are having trouble meeting the criteria for a financial institution or specific lender, you may need to cast a wider net and look at options that may be in your favour.

Thus, the criteria for taking a loan are rather strict, but with a little research and effort, it may be possible to reapply for a loan and be successful in getting it approved.

Must Read: How To Select an Instant Personal Loan

4 Smart Ways to Manage Your Loan Even Better

Prioritising your debts will help you manage them quickly. You can easily navigate the process with good planning in place and a few tips to better plan your loan repayment strategies.

Smart Ways to Manage Your Personal Loan Even Better

Keep Track of Your Credit Score

To get a personal loan in India, your credit score is an important number. It ensures that your finances and your credibility are healthy. Making timely loan payments will help you save on late payment penalties and maintain a good credit score. Set reminders or have an automatic debit system in place to not miss out on EMI payments.

Allot a Budget

Allotting a budget to accommodate your personal loan EMIs will help you plan your commitments efficiently. Make time to chart out a budget along with tax benefits to understand your obligations and your budget. Using a personal loan EMI calculator to select your EMI according to your budget will help you reduce financial stress.

Debt Consolidation

Having multiple debts is confusing. It makes you not only pay higher interests but also you end up missing payments. Debt consolidation will help you pay off multiple debts with a single EMI making it easy and simple to manage.

Increase EMIs

Increase your EMI with every salary hike or an increment. This planning will help you repay loans faster and bring down interest rates. Foreclose your loan when finances improve. Even though you will have to pay a penalty charge, you can calculate your saved interest and compare your savings to understand if pre-closing will save your money.

Managing finances is essential for you to save money and invest smartly. It is not possible to achieve your goals without financial discipline.

Must Read: 5 Costly Mistakes to Avoid Before Applying for a Personal Loan

5 Ways of Increasing the Possibility of an Approved Personal Loan

A personal loan is one of the most popular unsecured loans due to ease of borrowing and relatively low-interest rates. It can be used to cover personal expenditures such as emergency hospitalization, home expenses, etc.

Even with a low salary, a personal loan can be availed using certain precautions beforehand. Here are five ways you can increase the chances of your personal loan getting approved.

CIBIL Score

Before taking a loan, it is important to check your CIBIL score since financial institutions usually base their decision to approve a loan on this. Therefore, a score lower than the minimum threshold may decrease the chances of you getting a loan.

Income

If you are wondering how much loan I can get, it is based on multiple factors such as your income, CIBIL scores, and general ability to repay a loan. However, to get your loan approved, it is beneficial to have a steady income. Therefore, employment status and income status are important for financial institutions to check your ability to repay the loan.

Joint Personal Loan

If you fall short on the eligibility criteria to avail of a loan, it may be very helpful to have a co-applicant. If you can split your loan burden with a co-applicant, perhaps with someone with a better income profile, the credit risk is reduced, and the financial institution may have a higher tendency to approve your loan.

Income-to-debt ratio

If you have a low salary, a personal loan can still be availed, but your income-to-debt ratio may have a role to play in this. The Income-to-debt ratio is your monthly debt divided by gross monthly income. For higher chances of your loan getting approved, less than 40% of your income should be used for EMIs.

Multiple applications

So, how much loan can I get?

No matter how worried you are about that, do not apply for the same loan with different lenders. This might reflect poorly on your financial condition and credibility.

Despite the ease of availing of a personal loan, it is ideal for keeping these pointers in mind to ensure success in terms of loan approval.

Must Read: 5 Factors that Affect Your Personal Loan Interest Rates

How Can you Save Time by Applying for Personal Loans Online?

Applying for personal loans online can surely save you time. Online personal loans are quick, convenient, flexible and hassle-free. These loans require minimal documentation that involves no paperwork at all.

Online loans give you the leverage to apply for emergency funds without having to visit the lender. You just need to fill in the application form, upload the essential documents required for a personal loan, and wait to hear from the lender. Your loan will be approved within 24 hours, and the funds will reach your account within 30 minutes of approval.

Steps to Apply for an NBFC Personal Loan Online

Step 1: Visit the financial institution’s website or install the app

Step 2: Check your eligibility using the personal loan eligibility calculator

Step 3: Check if you meet the eligibility criteria

Step 4: Fill in the application

Step 5: Upload the necessary documents

Step 6: Click submit

The financial institution will immediately notify you regarding your loan eligibility. If eligible, the customer care representative will get in touch with you to discuss the terms. Once all the processes are done. The loan will be approved within a day. The disbursed loan amount will reach your account within 30 minutes.

Online application is the best way to check your loan eligibility and status without relying on the branch for updates. You can check all your loan-related details 24*7 independently. The receipts and all paperwork are digital, that you don’t have to file any paperwork. Choose a lender with good customer support to answer your queries on time and enjoy the perks of hassle-free loans.

Must Read: 5 Factors to Consider While Choosing the Right Personal Loan

Should You Get a Personal Loan or Gold Loan?

gold-loan-personal-loan-your-needs-1

Personal loans are collateral-free loans, while gold loans place gold as collateral and determine the loan amount based on the gold’s value.

Whether you get a personal loan or gold loan depends on your financial assets since not everyone has gold to spare. When making this decision, there are some key differences you need to be aware of.

Difference Between Personal Loan or Gold Loan

Unsecured vs Secured Loan

Gold loans require gold pledged as collateral (secured), while a personal loan requires no collateral (unsecured).

Interest Rate

Gold loan interest rates can go up to 24% p.a. Meanwhile, personal loan rates are usually competitive, starting at 11.99%. You can determine your rate using a personal loan interest rate calculator.

Loan Amount

Your lender determines the gold loan amount based on the gold’s value, sanctioning a loan of up to 90% of the gold’s value. Personal loans usually have an upper limit of about Rs. 25 lakhs.

Repayment

Gold loan tenures are usually between 3 months to 3 years. You can take personal loans for up to 5 years.

Documents Required

Gold loans also require proof of ownership of the pledged assets. Less documentation is required for personal loans.

Processing Speed

Gold loans may take a few days for disbursement. In contrast, personal loans can be approved instantly, with disbursal within 30 minutes if you meet the eligibility criteria.

Understanding these differences ensures you make the right decisions for your finances. With Fullerton India, you get personal loans approved instantly at competitive interest rates and flexible repayment tenures!

Must Read: How Does a Personal Loan Help Settle Previous Debt?