Personal loans are the most common type of loans availed by people for a variety of purposes. The beauty of personal loans is that they are unsecured in nature, i.e., unlike other bank loans like Business Loans ,these loans don’t need any security.
As mentioned personal loans can be availed from a variety of purposes like
Funding for vacation
Family events like Marriage/ Birthday Party
Medical Expenses
Advances for Home Constructions
Paying off long term credit card dues/ or any other high interest loans
Down Payment for purchase of cars
Interior Furnishings etc..
As personal loans don’t require any security/collateral the documentation for obtaining these loans is also very less when compared to other bank products.
Personal loans on the other hand are disbursed with in just a few days of applying, and the interest rate is also reasonable, making it the most popular banking loan product.
Loanzzones is one of the leading online loans service provider, that can make your dream of procuring a personal loan into reality. Our Team of Banking & Financial Experts have these handy tips for obtaining the personal loans smoothly.
Assess Your actual requirement: You need to assess your actual loan purpose before applying for a loan, as personal loans demand you to pay a specific amount of money as EMI for a month.Hence you need to apply a personal loan only for a productive purpose. Procuring the loan for an unproductive purpose will make you more debt-ridden.
So be practical and think twice about your actual purpose before applying a personal loan.
Research is the Key: Personal Loan Market is way too competitive, several banks offer personal loans at competitive rates, hence do your research before applying a loan. Not only interest rates, but also you need to check about the hidden charges like processing fees from various banks before taking a decision. Remember it’s your hard-earned money, with which you need to pay the EMI/Interest every month.
Care about Your Score: As we have mentioned earlier, personal loans are unsecured, hence banks heavily depends on credit scores for providing you with the loans.Indian banks mostly rely on Credit Scores from various credit rating agencies like CIBIL, Equifax, Experian etc. for loan purposes.
For example most of the Indian Banks can consider you as an eligible for personal loan if you have a credit score of 750 and above. Also the banks will check for your repayment history, and default history.
Hence your need to maintain a healthy credit history, for avoiding any disappointments regarding personal loan processing.
Eligibility is everything: Before applying for personal loans you need to check with your eligibility for procuring the loan. Most of the banks provide personal loans only for working employees with a minimum salary of Rs.25000/- or more. The amount you can expect from the bank also depends upon your gross salary. Hence assess your requirement properly considering all the income conditions before you apply for a loan.
Multiple Loan Applications is not Cool: Applying for multiple loans from several banks can impact your credit score negatively. As all your loan inquiries are recorded in your credit score, and applying for multiple loans may create a negative impression about you that you are too desperate for funds, and may not repay the loan. Along with affecting credit score, this type of behaviour may impact your future financial prospects as-well.
Maintain a Cooling Period:
Sometimes your loan request may be rejected by banks due to various reasons, hence experts usually recommend a waiting period of at least 6months before applying for a new loan. This time frame can be utilized by the loan seekers for clearing their out-standing dues, and improvising their health-scores.
Remember patience is the key, multiple rejections from the banks for your loan requests will have a drastic negative impact on your credit score.
Loanzzones the leading online loan service provider, is connected with 40+ Banks across India. We offer you a plethora of loan products like Personal Loans, Home Loans, Business Loans, Mortgage Loans, MSME Loans etc.. at competitive interest rate with faster disbursal time.
