There are times when balancing your finances becomes a hassle and a headache. When you have exhausted all your finances on your requirements and no money is left with you to fulfill your upcoming monetary requirements, that is when personal loans come up to your rescue.
Personal loan is usually an unsecured loan taken for various purposes ranging from weddings, medical expenses, vacations or even debt consolidation. Usually Personal Loans are taken for substantially higher amount of money. The interest charged on personal loans is high as they are unsecured loans.
Your loan is provided and approve based on your income. While the tenure of the loan varies from 1-5 years depending on the amount you borrow, the loan is repaid in smaller installments or EMIs.
As this type of loan does not require any security through assets, the bank charges a higher rate of interest from the borrowers in order to ensure security against the amount lent by them.
How to Get a personal loan?
Lack of adequate funds is a problem that almost everyone suffers at some or the other point in time. To help you take the right steps, here is a step by step personal loan process that will help you finance your requirements.
- Before applying for any type of loan or financing, check your credit score which can help you negotiate with the lenders in terms of not having a guarantor if your credit score is good (Above 750).
- If there are any issues or misinformation in your credit report, then get it rectified and make sure that there is no credit fraud or identity theft which can affect your chances of receiving finance.
- Keeping a check on your debt through simple ways can increase your chances of qualifying for receiving a Personal Loan. You can manage your debt wisely by.
- Keeping balances on credit account as low as possible.
- Unused credit cards should be open.
- Pay of debt quickly and on time.
- To get the best personal loan, the first and foremost step is to research for the best lender. The market is flourishing with variant lenders who promise to give you the best rate for your loan. However, as a borrower, it becomes your duty to find the right lender that suits your needs and provide you with the best loan rates.
- After you have chosen your lender, the lender’s agent will visit you to collect the necessary documents required to offer you the loan amount. You might be asked to submit documents including salary slips, bank statements, ration card, IT returns, passport etc.
- Once you have provided your documents, a field investigator will visit your home in order to check whether the details provided by you through the documents are correct or not. These details might include your residential address, your working address and other important ones. It is important for a borrower to be present during this visit of investigator or otherwise, he may report that facts do not add up. There can be chances that you might get rejected for the same reason.
- If all the information satisfies the lender, your loan application will get approved. The lender will then pay you the money through a demand draft or cheque.
Be open and don’t hide things in front of your potential lender. If there are any difficulties, then mentioning about the same to lender might help you during the whole process.
So,are you also planning to take out a personal loan? If yes, a thing of concern to be kept in mind includes budgeting of your loan.
Before getting a personal loan, you should budget your loan and allocate which of your requirements would be later met by the loan amount.
It should also be noted that unlike commercial banks, a lot of esteemed NBFCs like Finserv Markets are offering personal loans that require minimal documentation and can be availed right from the comfort of your home. So why wait? Get yourself a personal loan and solve all your financial worries, today!