While a personal loan might be the best possible solution for a short-term emergency or in a crisis like the current pandemic, it may not be on everyone’s cards to directly jump for a personal loan when they need to handle their finances. However, personal loans are better than many other debt instruments out there and can offer a lot more financial stability amongst other benefits. It may sound a bit complicated and worrisome to start EMI tenures, but if you want to improve your financial situation and not burn out all your current wealth, then an online personal loan may be your best bet.
If you are planning to get a personal loan this year, then here are a few tips to help you plan better and make a wise decision:
- Be certain of your needs- Ensure that you know what you need a personal loan for and how much amount would be enough for your requirement. It does not make sense to apply for a loan of a higher amount because you are being charged an interest rate on the entire sum.
- Calculate your EMIs- You must take your monthly budget and expenses into account before applying for a personal loan. The personal loan interest rates can help you calculate your EMIs.
- Check your credit score- If you have a credit score that is lesser than 725, chances are that you will end up paying a higher interest amount on your actual principal. Lenders associate this score to your repayment cycle, risk capacity, and financial habits. If your score is very poor, then they may decide to reject your loan altogether as well.
- Read up on the eligibility criteria- Every lender has a different personal loan eligibility criterion like the age bracket, earning per month, minimum of six months at your current job, etc. It would be wise to check the eligibility criteria for multiple lenders to know which one fits your needs the best.
- Opt for a shorter tenure- Personal loans have a payback option of up to 48 months, but it would be wise to go for a shorter tenure. The longer your loan tenure is, the higher you will pay as interest with your principal amount. You can simply adjust your term on the loan calculator and enter the personal loan interest rates offered by various loan providers, and then choose accordingly.
- Go digital with your loan process- Nowadays, everything is easily accessible on the internet in less than a few clicks, and the lending segment is no different. You can avoid a lot of hassle and extra paperwork by simply opting for a personal loan online. All you have to do is visit the lender website or mobile application and go through their website to apply for a loan online. If you have any doubts about the process or after it, you can get in touch with the lender’s customer care or loan advisors, and you will be good to go.
Loans acquired via personal banking are way more reliable, feasible, and simpler to apply than most credit cards and their eligibility processes. All you must do is check for the amount that you are eligible for in a personal loan, compare personal loan interest rates that various banks are offering, and then apply online with the bank of your choice. Reliable banks like Axis Bank offer online personal loans with minimum documentation and speedy approval. So, take that first step towards planning your finances today!
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