5 Things to Consider While Opting for A Personal Loan This Christmas

With Christmas arrives the joy of giving. From buying presents for your family, to taking part in corporate Secret Santa events at the office, everybody gets a little something during Christmas. This also gives rise to dreaded holiday expenses. Now you can manage your finances this Christmas by taking an easy personal loan. A Personal loan is an unsecured loan which can be used for any kind of financial need or emergency.

Indiabulls Dhani provides you with instant personal loans ranging from Rs 1000 to Rs 15 lakhs. You can pre-plan all your expenses and avail a loan for the amount you need. But there are a few things which you should keep in mind before you decide to take a personal loan for your Christmas expenditure.

1. Choose Lenders with Best Interest Rates

Always look out for lenders which give you a competitive interest rate. Different lenders will have a different range of interest rates. One important thing you should keep in mind is that when you choose to repay your loan through EMIs, the interest should be calculated on the reducing balance. You can use a personal loan emi calculator to an idea of the same.

2. Assess Your Needs

Avail a loan only for the amount that you need. For E.g. you are eligible to avail a loan of 10 Lakhs with the lender but you only need Rs 5 lakhs, then you should avail a loan of Rs 5 lakhs only. In this way you can improve your credit score and also save on paying more interest rate.

3. Check your CIBIL score

Before you apply for the loan, you should check your CIBIL score. As the personal loan is an unsecured loan, credit score is the first criteria which lenders evaluate. A credit score of 700 and above is usually considered a good credit score. Pay off any credit dues before you apply for the loan.

4. Evaluate All the Costs Involved

When you avail a personal loan, there are a few charges involved. Along with the personal loan interest rates, you should know about the different kinds of fees charged by lending institutions. The most important ones are listed below:

• Processing Fee

When you take a personal loan some lenders may charge you a processing fee. It is a percentage based fee which is charged for every payment that is processed.

• Prepayment Fee

A prepayment fee is when you pay the loan amount before the tenure ends. Many lenders are willing to waive off prepayment fees, depending on the loan amount and EMIs paid.

• Late Payment Fee

When you fail to pay the EMIs on time, you are charged a penalty which is the late payment fee. It is beneficial to be aware of the potential charges in the event that you are delayed in paying your EMI.

5. Understand Details of all Additional Offers

There are chances that banks or NBFCs might offer you some additional services too. Always read through the details of any additional offers before taking them.

The process to avail a personal loan with Indiabulls Dhani is completely digital and hence paperless. At Indiabulls Dhani, we require minimum documentation and no collateral. This Christmas do not stress about your finances. Experience the joy of gifting all the loved ones around you by giving them something to remember.

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