A Personal loan provides fast disbursement and quick access to funds. In times of a medical emergency or financial disaster, they have proven to be the ideal kind of financing.
Although personal loans have many positive aspects, it is always advisable to keep yourself well-informed before choosing one. Here are some queries to put to your lender regarding personal loans.
How do you prepare for a personal loan application?
How get ready for the loan application process is one of the most crucial personal loan queries. To start with, being ready with all the necessary paperwork for a personal loan will help you be ready for the verification process. Calculate the bank processing fees as well because they often vary from financier to financier.
What are the eligibility criteria?
Your credit score is typically the first thing most lenders look at before approving your loan. Any credit score over 750 points would be considered acceptable in India. Your chances of being approved are significantly influenced by your current income. Your income is used to determine the quick personal loan’s ticket size as well.
What is the rate of interest?
Verifying the interest rate being charged for the loan is another wise piece of advice when taking a personal loan. Due to the greater risk to the lender, personal loans typically have higher interest rates. Choose carefully because the personal loan interest rates might range from 13 to 15% of the loaned amount.
Does the lender accept flexible EMI payments?
It can be challenging to keep up with fixed EMI payments, particularly given the dynamic nature of the market and people’s spending habits. Therefore, constantly keep an eye out for lenders who are flexible with EMIs. This will not only guarantee a simple loan repayment process for you, but it will also prevent any penalties from being assessed.
Is prepayment allowed?
When you pay off the loan before it matures, you prepay and save money on interest charges. This is obviously not what the lender wants, so they frequently impose a prepayment penalty or simply reject the option of prepayment. Before you commit to anything, double-check all of these details to avoid being hit with a huge prepayment penalty.
Does the lender limit the use of funds?
Most of the time, lenders don’t impose any limitations on how the loan proceeds may be used. But it is always important to discuss this specific subject with the lender in order to avoid any confusion. Do this ahead of time because different banks have different policies.
You have it now! You may be sure that the procedure of obtaining a personal loan will be simple if you give the aforementioned questions careful thought.
