6 Tips To Follow When Applying For a Personal Loan
The advent of technology has touched almost all sections of life and finance industry is no exception. Yes, you can apply for a personal loan for salaried person online on a lender’s website and don’t need to visit the lender physically.
Similarly, you can get a personal loan approval within minutes and money disbursed in 24 hours. It is one of the key reasons why people prefer personal loan to cover multiple needs.
Although apply for a personal loan for salaried individuals is easy to do, you need to consider some tips before doing the same. As a result, you can approach loan without facing risks of handling rejections. You don’t need to worry as you can go through some tips while applying for personal loans in this post. Read on!
Consider these aspects while applying for personal loans
- Don’t borrow more than your needs
Even when you get to know that you have matched a lender’s personal loan eligibility criteria for a higher amount, you should not borrow more than your needs.
Many salaried individuals utilize their fullest loan eligibility despite not having the requirement. Always know that getting the desired loan amount disbursed is a happy thing, but not the repayments.
The loan EMI that you need to pay per month directly affects your monthly budget. Hence, if you borrow more than the requirements, then you will need to dedicate a large amount towards the EMI.
As a result, you may not have enough funds to manage any emergency for a month. Therefore, make sure that the total EMIs that you are paying are not more than 40-50% of your total income.
- Ensure timely repayments
When you apply for a personal loan for salaried individuals, lenders can offer you a tenor ranging 12 months and 60 months.
This way, you can spread the loan cost over a longer tenor to pay small installments.
With lenders already helping you repay a personal loan as per your repayment capacity, you should ensure timely repayments.
If you make delayed payments or default it, then you may need to pay penalties.
Also, your CIBIL score may also take a beating which will diminish your chances of availing the next loan. Thus, you should try to be on time with EMI payments.
- Keep the loan tenor as short as possible
It is obvious that you may opt for a longer tenor as it may tempt you to pay smaller EMIs.
But, in this case, you will end up paying more (interest) to the borrower. When you opt for a small tenor, then the loan EMI will be higher.
But, you will be able to repay the loan much faster. As a result, you will also be paying a lower interest amount to the lender.
- Shop around for the best offers
When it comes to the personal loan for salaried individuals, you can see so many offers available in the market.
But, the offered rate of interest and charges differ from lenders to lender. Thus, the best thing that you can do is compare all offers online before signing the loan deal.
To do so, you can simply land on a third-party website showcasing all loan offers and pick one that best suits your needs and repaying power.
- Check lender’s personal loan eligibility criteria and documents
Before applying for a loan, you should also check personal loan eligibility criteria of a lender that you wish to apply for.
t will help you prepare in advance so that you can meet personal loan eligibility criteria for getting loan approval.
Another aspect is checking personal loan documents required by lenders to meet eligibility inside out.
Here is some standard eligibility and personal loan documents that would need to meet and arrange such as:
- Anyone who is a resident citizen of India can apply
- The applicant’s age needs to be under 23-55 years
- You need to be a salaried employee of an MNC, public or a private company
- KYC documents
- Employee ID card
- Last 2 months’ salary slips
- Previous 3 months’ salaried bank account statement
- Read fine prints at least once
You should always be aware of charges that you will need to pay in case of delayed payments, defaults, and foreclosures.
Hence, you should ensure to go through lender’s terms and conditions at least once to be aware of charges to be paid.
Going through the discussed tips will surely help you apply for the personal loan for salaried personnel without issues.
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Category: Loans
