In today’s fast-paced world, the dependency on credit has seen a drastic rise. With a sound economic outlook and an increase in spending power, more Indians are seeking credit to fulfil goals, which need a financial incentive. Therefore, instant personal loans help households meet any shortfall they experience in buying a house, a car, in children’s higher education or even in cases of wedding and medical expenses, among other things.
Simply put, it is an unsecured loan taken by individuals from a personal loan providing firm or a non-banking financial company (NBFC) to meet their personal needs. It is provided by key criteria such as income level, credit and employment history, repayment capacity, etc. However, before initiating the personal loan application process, you need to assess the loan amount you require and for what tenure.
These three simple steps are aimed to help you choose a personal loan provider easily:-
1) Check Your Eligibility:
Your credit history and income are the two most important factors that determine whether you qualify for a personal loan. If you have no credit history, then lenders will most probably reject your loan application, since they have no data points with which they can verify your creditworthiness. In that case, it is best to approach your existing lender, where you have a savings/salary account.
2) Comparing and Choosing a Loan provider:
One of the first things you should consider is which lender will lend you money. Doing some research and comparing potential lenders can help you get the finest personal loan interest rate and the most favourable loan terms, getting you the best personal loan for you. Even having a previous relationship with the prospective lender not only helps the application process move smoothly, but you might also be eligible for discounts on such charges as processing fees.
3) Check the Contours and the Documentation of the Loan:
Deciding on which type of credit is best for you, involves many factors, such as how much money you need, how soon you need it, what terms are available, and which lenders you can trust. You will have the option of applying online, in-branch or over-the-phone. However, opting for a personal loan online can help simplify your process. Here’s a general list of what may be required when applying for a personal loan online:
- Make sure the online lender you plan to do business with is a state-regulated organization. This will help you filter through the multitude of available online lenders, as it’s a competitive business.
- Your Aadhaar Card is your ID, and therefore it can be used as proof of identification in getting a personal loan.
- There is no need to upload documents or provide statements. Hence, you can apply, receive and manage your personal loan via the mobile.
Use the guide above to help you choose the best personal loan provider for your needs and financial situation.