A personal loan is the perfect solution for bridging financial gaps in your budget. With no need to provide collateral or submit tedious paperwork, a personal loan is a quick-fix for all your financial needs. Whether you need extra cash to fund your dream wedding or buy your favourite gadget, a personal loan can help fulfil it all. Naturally, personal loans are one of the most widely availed loans in India. However, despite the simplicity and convenience, it is important to ask yourself these 7 simple yet serious questions before applying for a personal loan: –
1. Is the Purpose of the Loan Worth it?
Personal loans are multipurpose loans and hence they can be used to fund anything under the sun (except illegal activities). Given the simple nature of the loan, it’s tempting to apply for a loan to fulfil every other need. However, personal loans carry relatively higher interest rates and therefore it should be taken only if absolutely necessary.
2. Are You Eligible for the Loan?
Since personal loans are unsecured loans, the eligibility criteria are rather stringent. Most lenders have an income threshold or require a good credit score. So make sure to check your personal loans provider’s website and find out the eligibility criteria before applying.
3. What is the Loan Amount Needed?
At times, you may find out that your loan eligibility amount is much higher than you need or vice versa. In order to avoid such situations, calculate the exact amount you need before applying for a personal loan.
4. What is the Interest Rate?
Personal loan interest rates are relatively higher than other types of secured loans. So make sure you understand the interest rates before applying for a personal loan.
5. What is the Maximum and Minimum Tenure?
The loan tenure is the primary deciding factor for your loan EMI as well as the cost of borrowing. A short tenure loan will increase your EMI and decrease the interest expenses. While a longer tenure will have the opposite effect. So make sure to inquire about the minimum and maximum tenure so that you can choose the one that fits your need and budget.
6. What Is the Total Cost of the Loan?
Many lenders may encourage you to opt for longer tenures by enticing you with low EMIs. However, in truth, you will end up paying more interest if you chase small EMIs. So bear the cost of the loan in mind before applying for a personal loan.
7. Is the Lender a Trustworthy One?
Presently, the market is teeming with numerous lenders and choosing the right one needs a lot of research. It’s best to opt for personal loans from leading and trusted lenders who have earned a good reputation over the years. If you opt for a Bajaj Finserv Personal Loan, you can be assured of top-notch benefits like instant online application, flexible repayment tenures and value-added services. To apply or know more about Bajaj Finserv Personal Loans, visit Finserv MARKETS, today.
“Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!”