Personal Loans are an easy solution to overcome a shortage of funds. What is a major benefit of Personal Loans? There is no pre-condition for how you use the loan. Gone are the days when applying for and getting loans was a daunting task. These days, online Personal Loans enable quick approval and fast disbursal. But to apply for a Personal Loan easily, you need to take care of some things.
Check your Credit Score
Planning to get a Personal Loan? Think of your credit score first. It is one of the most important factors lenders use to evaluate your eligibility. Your credit score is a record of all your past credit behaviour. It indicates your creditworthiness. Did you ever default on a loan in the past? Have you missed a credit card payment? Your credit history reflects all this. So, a poor credit score can discourage any lender from sanctioning a loan. It is a good practice to check your credit score at least once a year. If your score is low, try to improve it. You can do so with timely repayments.
Do Your Research
Before applying, do some research on the potential lenders. Many banks and non-banking financial companies (NBFCs) offer Personal Loans in India. At times, different lenders may offer you different loan amounts. So, start by deciding on the amount you need. Shortlist lenders based on this amount. Then proceed with your further analysis. Before arriving at any decision, compare the interest rates and the repayment terms. You must also look at the EMIs payable, loan tenor, and processing fees. The time necessary for approval and disbursal is also important.
You may be eligible for a Personal Loan with multiple lenders. But do not send out applications everywhere. This can have a major impact on your credit score. Suppose too many lenders raise an enquiry for your credit score. This could reduce your score by some points. Besides, you may come across as credit hungry to potential lenders. After you do your research, shortlist the best options. Apply to a lender where the probability of loan sanction is high.
Keep Your Distance
Did you take a Personal Loan recently? Wait at least six months before making a new application. Why? Lenders might not trust your ability to repay a new loan. After all, you already have an outstanding liability. Frequent loans show credit-hungry behaviour. It may also raise concerns about whether you can repay an additional obligation.
Keep All Documents Ready
Most lenders ask for a similar set of documents for Personal Loan applications. To save time, keep all your documents ready. Then, during application, you will only need to arrange for extra documents that a lender may seek.
Get the Right Application Form
Generally, lenders upload the application forms online for easy access to borrowers. But, before applying, check if you have the correct form. It is better to source the updated form from a representative of the lender. Are you filing an online application? Then you will have to furnish details and upload your documents online.
Read the Terms and Conditions
There is a long list of clauses for any loan that you may avail. Do not ignore it because of the fine print. You need to take a well-informed decision here. Go through the terms and conditions with care. This will help you avoid shocks and surprises later.
Submit a Complete Application
Make sure you have furnished all the required details and documents. Double check before submitting your application. This will save time, and avoid any back and forth with the lender. You will get quicker approval too.
Using these simple tips, you can enjoy an easier application process. Once this routine is in place, you can save time and speed up the process. Get a Personal Loan with ease from Bajaj Finserv, one of the most diversified non-banks in the country.