In our daily lives, there are many times when we can benefit from a little extra liquidity. Home renovations and improvements, exotic holidays, paying medical bills and managing wedding expenses– these are just a few instances in which people are willing to apply for a loan to help alleviate their financial burden. Applying for a personal loan of a small amount to help you meet certain requirements is not a bad idea at all. However, before you fill out the paperwork and put in your application, it’s important to ask yourself the following questions:
1. Is it a Good Idea to get a Personal Loan?
This is one of the first questions you need to ask yourself. Never rely totally on the loan amount. Think about your savings and requirements and then decide on whether you should apply for the loan or not. If you have regular income, then going in for a loan might not be a bad idea.
2. What Do I Need This Loan for?
Yes, this is another question you need to ask yourself. If you are looking for additional finance for an upcoming wedding, then a loan is a safer option than using a credit card. On the other hand, if you wish to go on a vacation and you already have a travel card, then you may save a lot more by using the travel card. So, it’s important to understand what you need the loan for before making any decision.
3. What Will the Monthly Payments Be?
The money that you borrow should not only satisfy your needs, but should also be something that you’re able to repay easily. Therefore, you should be well aware of what your monthly payments will be before you apply for the loan. If the EMIs end up putting undue pressure on your monthly finances, then it’s best to avoid applying for the loan.
4. What Is the Tenure of the Loan?
When applying for personal loans most people are only concerned about the rate of interest. What they do not understand is that the tenure of the loan is equally important. Generally, these loans can be taken for as little as 6 months or as long as 5 years. Remember, the tenure and interest together will dictate what your monthly repayment amount will be. Finserv MARKETS offers Personal Loans with repayment tenures ranging from 12 – 60 months thus allowing you to pay basis your convenience.
5. What Is My Credit Score?
Lenders look at your credit score before they sanction a loan amount. Your credit score also plays an important role when it comes to offers and benefits that you get with personal loans. Hence, you should be aware of your credit score before applying for a loan. There will always be more lenders who would be interested in providing you with a loan if your credit score is good. A good credit score rating shows your creditworthiness and helps banks understand whether or not you will repay the amount in full. However, depending on the lender you might also get a personal loan for low CIBIL score.
6. What Interest Rate Will I Pay for the Loan?
Never accept the interest rates of the very first lender you approach for a loan. Shop around until you find the lender who provides the best rate for your tenure and loan amount. Remember, if you have a good credit score, you can ask for better rates from lenders.
While applying for personal loans, one of the biggest mistakes that people make is ignoring the fine print. Also ensure that you read the terms and conditions before you fill out the application for a personal loan. Make sure you check if there are any extra charges or if there’s a fee you need to pay for the foreclosure of your loan.
With Finserv MARKETS, applying for a Personal Loan is easy, convenient and completely hassle-free. What’s more? You get a host of other features and benefits that you can avail. So why wait? Apply for a personal loan with us, today!