Home Discover Expert Speak The A-Zs of Availing a Loan

The A-Zs of Availing a Loan

By Avinash Sorte - Oct 18,2019
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A-Z of availing loans

Looking to buy a new car or go on a family trip to your dream destination? Are you faced with a medical emergency that requires immediate funds? Or how about buying your own home? Whatever your need may be, if finance is your only concern, availing a loan might just be the solution you need!

However, are you aware of how to go about the loan application process? Are you abreast with the best offers and interest rates when applying for the loan? Are you updated about the fees and charges associated with it? If no, then the tips listed in this blog are sure to help you make an informed decision when applying for a loan. Read on.

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Tip 1 – Getting Started

The first step you need to undertake is to search online for all things loans by entering specific keywords as per your requirement. For instance, if you enter the keywords ‘How to get a loan’, you will have loan provider after loan provider trying to entice you into sending your business their way. To understand better, I’ll provide some insight into what the lender’s perspective is and what you, the borrower’s perspective should be.

Tip 2 – Understanding your Lender 

  • Most lenders are convinced that you’re an expert borrower and are borrowing for the nth time. They ask you to directly take the plunge and start the loan application process.

  • Only once you start the journey of applying for a loan do you realize that you have started entering your personal details. You’re then asked to enter an “OTP” which in turn takes your consent for the loan terms & conditions.

  • A lot of applicants drop out after this stage, as they are unsure of what further details are required for the loan application process. An army of communication from the lender takes over & they nudge you through pesky calls and messages to take the next step – which eventually leaves you regretting opting for a loan in the first place.

  • If you have taken the next logical step, then you would be asked to provide more details related to your employment/source of income.

  • If you are lucky enough to meet the lender’s loan eligibility criteria, then using their coke formula-based criteria, the lender would show you an offer. Most first time borrowers are only concerned with the loan EMI outflow.

  • Post this, based on your need and urgency, the lender would end up giving you a loan on their terms. You’d then need to complete the documentation process.

  • The packaging of the documents compels you to inch towards the ‘Sign Here’ section. And Voila! You have scaled the first peak of lending.

  • The loan is disbursed and the lender awaits the day when the first loan EMI will be deducted from your bank account.

Tip 3 – Understanding your own needs

  • To ensure that you avail the best possible loan offer, make sure to do some thorough research before you choose and apply for a loan.

  • Read each lender’s ‘Loan Eligibility Criteria’ in detail as most lenders would have some criteria – based on your income and loan repayment capacity – that you’d have to meet to secure a loan. The Finserv MARKETS platform makes this part of the process even better by providing a loan eligibility calculator.

  • Enter your preferred loan amount and tenure in a loan EMI calculator so that you know upfront what EMI and loan interest rates you’d have to pay to service the loan. For instance, on Finserv MARKETS, you can avail personal loans of up to 25 lakhs with flexible repayment options, home loans of up to 3.5 crores with exciting benefits or business loans of up to 30 lakhs to meet your business’ unique requirements. See? Research always pays off!

  • Check your CIBIL score as it allows you to gauge your credibility from the lenders’ perspective. The higher the score the better pricing you can negotiate with the lender. There are several websites which give you a free financial fitness report

  • Be very clear on the documentation for completing the loan application process. Depending on how much know-how you have, this could either be the easiest or the most difficult part of the entire loan process. This documentation generally includes a personal identification document such as your Aadhaar Card or passport, your PAN card and your bank account statements for the last three months. On Finserv MARKETS, the entire documentation process is hassle-free and can be done online seamlessly.

  • Finally, scan all the fees and charges before signing the loan agreement – as you should not wake-up to any last-minute surprises.

  • However, to brace yourself for any unexpected surprises, you can opt for insurance cover as well.

  • You can then service the loan EMIs happily ever after.

So, here’s the deal: availing a loan is no piece of cake and, for first-timers, it can be quite a daunting process. However, armed with good research and by following the above steps to the T, you can get loans tailor-made to your needs, quickly, seamlessly and without hassle. On Finserv MARKETS, you can take your pick from a number of lucrative, customised options at the tips of your fingers.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522