Things you should know before taking personal loan?

A personal loan is an excellent financial resource that will help you meet your quick cash needs. It can come to rescue you from any financial emergencies such as pay medical bills, fund sibling’s college fee, meet wedding expenses, go for a family trip, do urgent home repairs, etc.

• Before applying for a personal loan, your job stability, and income source matter a lot. Ensure you have a regular flow of income of around # 50,000 & above with a stable job of 1-2 years.

• Maintain a healthy credit score of around 700+ to negotiate for low-interest rates and higher loan eligibility. A good credit score indicates you have excellent repayment history and you’re a responsible borrower. Lenders would welcome such candidates to offer loan at attractive interest rates.

• Ensure you have all documents related to your income source, KYC details – address proof, identity proof, bank statements, etc. handy before you apply for a personal loan.

• With a good income source, and credit score you can negotiate with lenders for low-interest rate deals, flexible loan tenure and pick affordable EMIs

• Lenders will evaluate your application and disburse the loan amount in your bank account in a mere couple of minutes.

• In your quest to avail finance, don’t just apply with the first lenders. Aggregate sites will help you to compare quotes of top banks & NBFCs and avail loan with attractive interest rate deals.

• Watch out for the extra fees like processing fee, late payment charges, pre-payment charges, cheque bounce charges, etc. It will give you a clear estimate of the expenditures and help you manage your finances more efficiently.

• Make use of personal loan calculators to determine your loan eligibility, interest, and principal outgo, and EMI which proves affordable on your wallet. This way you can weed out unwanted expenses, and make comfortable loan repayments.

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