Tips to smoothen your loan application process for easy approvals
A personal loan can help you fulfill your immediate financial goals such as debt consolidation, wedding expenses, take a foreign trip, buy electronic appliances, car repairs, home renovation or may cover up an unexpected medical expense, etc. They are offered based on the credibility of the borrowers, along with their income details and repaying capacity. You can procure a loan amount that varies between 50000 to 25, 00,000 with a repayment tenure that would range from 24 months to 60 months.
Thanks to the leading aggregator sites you can now compare quotes of private finance companies, banks, and online lending agencies under a single platform and take an informed decision on a personal loan.
These sites bring the best players of the market under a single umbrella wherein you can compare interest rates, processing fee, principal amount and apply for personal loan online. Online lending is rather fast and slowly gains the trustworthy amongst the borrowers because of the quick and easy digital application procedure. They offer faster loan sanction and instant disbursal of the loan amount to your bank account as well.
Since the sector is vast there are few terms you should be aware of so that you make a successful personal loan application for easy approvals:
Purpose of taking the loan
The loan can be availed for any purpose as long as it’s not about dealing in any illegal activity. You neither have to specify any reasons for taking a loan nor pledge any collateral to take the loan. The loan could be availed for home renovation, medical emergency, wedding, pay for sibling's higher education, travel, etc. You can buy a new automobile as well or make a down payment for the residential/commercial property, cover expenses such as business expansion, inventory setup as well. It's important you get a clear picture of the purpose so that you borrow only the requisite amount
Check your loan eligibility
You can't just choose any ballpark figure to avail the amount. It basically depends on your eligibility and lenders will evaluate it before they offer any loan amount to you. It's important that if you're a salaried professional or self-employed individual you follow the minimum salary or earnings criteria to avail the loan. For salaried individuals, you need to have a salary of around 20-25K to take the loan. Your age and occupation will come in the picture to decide the personal loan eligibility.
Credit Score
It's one of the most important checks by lenders to test your repayment ability. It decides if you repay your dues on time and you are a responsible citizen or not. It is vital you maintain a score of around 750+ to negotiate with the lenders for low-interest rate deals.
Interest Rate and Duration
When you compare Apnapaisa personal loan on aggregator sites you can see that some lenders are willing to offer loans starting at just 10.99% which is far lower compared to traditional finance. A steady income source and good credit score would be the key to reduce your interest rates. The duration can range from 12 to 60 months to repay the loan amount. You can make payment in EMIs and through the auto-debit process.
Additional Charges
When any bank, NBFC or e-lending firm offers you loan there are many charges other than interest rates such as processing fee, late payment fee, pre-closure charges, etc. You should talk to the lenders and try to get a waiver as it will help you save more money.
