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Questions to ask before you apply for a personal loan in India

, January 28, 2020, 0 Comments

personal-loan-marketexpress-inThere could be a lot of occasions in your life when you need financial help. It could be anything from your wedding, house renovation, urgent medical requirements, to a much-awaited foreign trip. You might often not have the large amounts of readily available money at the time, and that should definitely not stop you from making important life decisions.

An easy and quick way to avail a personal loan is online at various financial institutions. The entire process is online and approval can be secured in merely 3 minutes with minimal documentation. You can instantly check your EMI with the personal loan EMI calculator. You can even access your loan account anytime, anywhere, 24×7!

But before you make this big financial decision, there are certain things that you should be clear about. Here are the top 10 questions you must seek answers to before you apply for a personal loan.

  1. How much money do you actually need?
    This depends on what you need to loan for. You also need to take into consideration your repayment capacity. You can use a personal loan EMI calculator to get an idea about your EMIs. Make sure you calculate your requirement as precisely as possible. Any loan amount more or less than what you actually need could turn out to be a loss.
  2. What are the personal loan eligibility criteria?
    This is a basic requirement. Usually, lending institutions require the following.
    You should between 18 and 55 years of age
    You should have a steady income through a stable job
    Another important requirement is a good credit history. A credit score of 700 or more is usually preferred.
    Depending on the lending institution, there may be other specific personal loan eligibility criteria too.
  3. What are the documents required?
    The next step after personal loan eligibility criteria is documentation. If you don’t have proper documentation, your application might not get through. The general requirements are
    Id proof
    Proof of employment
    Income proof
    Photographs
    PAN card
  4. What are the disbursal and approval timelines?
    If you need a personal loan urgently, you need to choose a bank or NBFC (Non-Banking Financial Company) with a fast approval and disbursal timeline. Usually, it takes a day to approve a loan and 3 to 5 days for the amount to reflect in your account. But what if you need the amount within a day or less?

Bajaj Finserv Personal Loan, available on Finserv MARKETS provides a swift online process. You can apply in three minutes and once approved, disbursal can be executed within 24 hours. The lending process is practically paperless and extremely convenient. You need not worry about hidden charges as complete transparency is maintained right from the beginning.

  1. What is the interest rate?
    The interest rate on personal loans is usually higher than that on secured loans. Different lenders will have different rates, and comparing them all is necessary before you apply for a personal loan.
  2. What are the prepayment charges?
    A majority of banks and financial institutions levy prepayment charges for early repayment. The rate of these charges could depend upon the outstanding loan amount. Knowing about these beforehand will help you plan your expenses better.
  3. What are the other charges?
    When you apply for a personal loan, there are other charges to consider apart from the interest rate and prepayment charges. These usually include
    Processing fees
    Annual maintenance charges
    Bounce charges
    Penal interest
    Foreclosure charges
    There could also be more like ECS return fees, convenience fees, etc.
  4. What is the tenure of the loan?
    The tenure of a personal loan is crucial because it determines the EMI. A shorter tenure would mean a bigger EMI amount while a longer tenure will mean smaller EMIs. When you know the minimum and maximum tenure periods, you can plan your EMIs well. Use a personal loan EMI calculator online and find out the accurate amount for a precise idea.
  5. What is the estimated total cost?
    This will be your loan amount plus interest and various charges. You cannot plan your repayment without knowing this amount. Ask the lender for an estimate early on so that you are not in a spot with your finances later.
  6. Is the lender credible?
    There are a plethora of lenders in the market and it is quite a task to choose one from many. However, you must conduct research on all the ones you are considering. Go through customer reviews. Read brochures. Make sure your lender is completely trustworthy.

If you remember to ask these 10 questions and get convincing answers, you should be good to go ahead with your personal loan and fulfill your needs and desires.

In association with FinServ Markets


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