Do's and Don'ts While Taking a Personal Loans in India
Personal loans have always been one of the most sought-after loans offered by Indian lenders. The increase in the demand for personal loans, coupled with a decrease in interest rates, has prompted Indian lenders to come up with different types of personal loan offerings. An instant personal loan, for example, disburses funds within 30 minutes of loan approval.
Although instant personal loans are one of the easiest loans borrowers may avail of, most often borrowers make a few silly mistakes which not only affect the loan interest rates, tenure, and loan amount but also downgrade their credit profile.
This article informs you about the various types of personal loans and acquaints you with the things you need to do to get the best interest rates and things you should avoid while availing an instant personal loan online.
What are the Various Types of Personal Loan?
Whatever your requirements, there is always a personal loan that can cater to your needs. An instant personal loan can be either of the following types.
Wedding Loan
Home improvement loan
Personal loan for salaried
Personal loan for self-employed
Personal loan for doctors
Holiday loan
Personal loan for emergency
Personal loan for elite
Personal loan for women
The Do's and Don'ts of an Instant Personal Loan
The Do's
1. Choose a Lender Whose Loan Application Process is Simple and Easy
Look around, and you would find many borrowers who think that availing a personal loan is a time-consuming and lengthy process, as they need to bring multiple documents, come back to the lender's office again and again, and wait for the loan to get approved.
Not anymore, as lenders allow you to apply for an instant personal loan from the convenience of your home. In fact, applying for an instant personal loan should not take more than four clicks and a few minutes. If you are finding the process extremely time-consuming and you feel as if you aren't getting access to the loan amount any time soon, consider exploring a different lender.
2. Enquire About the Loan Approval Time
Gone are the days when loan approval was a week or month-long affair. Modern technology has made it possible to apply for instant personal loans and get funds in your account on the same day. The process might be a bit longer if you are a first-time applicant, though.
Being loyal to lenders can provide you with several extra benefits like relaxation in loan repayment tenure, increase in the loan amount, and super-fast loan approval.
3. Carefully Consider the Loan Amount
The loan amount of an instant personal loan interest rate depend on multiple factors like the applicant's credit score, monthly income and expenditure, income stability, existing debt profile, and many other factors. If your profile is as per the best expectations of the lender, you can get the lowest interest rate, the highest loan amount, and attractive terms.
However, before you decide the loan amount, consider your financial profile and choose the tenure and loan amount appropriately. Remember that a loan should never be a burden on you. Do not hesitate to lower the loan amount if you feel that will cause less strain on your finances during the repayment period.
The Don'ts
1. Never Desist From Asking Questions
As an informed borrower, you must have a clear idea about the charges and other associated costs while availing a loan. instant personal loan if favored by borrowers because of its transparency in disclosing the terms.
2. Never Take Repayment Lightly
Financial problems can happen with the best of us. While almost all lenders allow some grace period if a borrower is unable to repay the loan, it should not be taken for granted. On repeated delays in payment, the lender may send the borrower a legal notice, which may impact the credit score of the borrower heavily.
3. Never Avail an Instant Personal Loan without Checking the Lender's Website
While contacting an agent can save you time, not visiting the lender's website can keep room for errors. Before finalizing the lender, you should visit their official website, read whatever is written publicly, and use the online support for further clarifications. By reading and enquiring, you can learn more than what an agent can inform you.
Conclusion
An instant personal loan, if chosen appropriately, can offer unparalleled comfort. Check this space to read up to date articles about loans.
