Medical emergencies, unexpected expenditure or other financial crises require instant funds. Despite setting aside a portion of your income to manage such adversities, it is likely that your savings may not suffice to tackle the issue at hand. In such a scenario, personal loans offering an ample loan amount and a flexible repayment tenor are a go-to option. Considering the growing demand and popularity of such loans in the market, you may easily find a lender offering a fast personal loan at an affordable rate of interest. However, evaluating your reasons to take a personal loan makes for a sound financial decision.
4 Things to do when opting for a fast personal loan
Do compare different lenders
A smart way to get an affordable personal loan is to assess and compare different lenders instead of going for the first offer you see, or relying on your existing bank only. Check various offerings by weighing the loan amount, interest rate, repayment tenor and other value-added services against each lender. This will not only help you address your urgent requirements with ease, but also make the most of the loan and services offered while keeping your finances in check.
Do opt for loans with a quick disbursal time
A lengthy loan application process and an equally long loan disbursal time will offer you no help. Instead, you will be spending more time applying for the loan than addressing the urgent issue at hand. So, while searching for lenders, look for one that has the minimum loan processing and disbursal time, apart from other benefits.
Do calculate the loan amount and your repayment capability
Before you proceed with your loan application, it is advisable to ascertain the loan amount you need and your repayment ability. Doing so will restrict you from applying for a high loan amount and from throwing off your budget while repaying the same. To help you evaluate this in advance, use a personal loan calculator. All you need to do is enter the loan amount, repayment tenor and the rate of interest offered by the lender to compute your personal loan EMIs and plan repayment.
Do read the loan agreement carefully
Before you sign the agreement, make sure that the details about the loan such as the agreed loan amount, repayment tenor, rate of interest and other important details are mentioned correctly. Also, make sure to check for the mention of any processing fees not brought to your notice earlier. Once you have read through the document and have all your queries answered, proceed to sign this legal document.
4 Things to avoid when opting for a fast personal loan
Don’t ignore your CIBIL score
Your credit score is one of the important factors that lenders check when verifying and approving your loan application. A healthy CIBIL score that is above 750 will yield you an affordable personal loan whereas a low credit score may either lead to rejection of your loan request or get you a loan with a high rate of interest. Make sure to check your credit score before you proceed with your application and work to improve it before you apply for a loan.
Don’t disregard applicable fees and charges
There are other costs associated with a fast personal loan apart from the interest rate. These include the processing fee, secure fee, statement charges, cheque bounce fees, part-prepayment charges, foreclosure charges, and more. Make sure you ask to see all the charges applicable to your loan beforehand and choose a lender who has no hidden fees. This will help you plan your repayment better and avoid sudden charges cropping up in the future.
Don’t lie on your loan application
Mentioning incorrect details about your employment status and history or withholding any important data (like existing debt) can have adverse effects. Not only can it result in the rejection of your loan application, but it also negatively impacts your CIBIL score. Since all lenders verify the details in your application with relevant documents as well as credit information companies, it is best to be honest.
Don’t choose a lender based only on the interest rate
While the lender’s interest rate is an important factor, it should not be the only criterion that you look for. Make sure to check if you can get faster processing, a high loan amount, a longer repayment tenor, access to an online loan account for easier management, and other value-added services. Last, but not least, check the lender’s market reputation. This will help you choose the right lender and have a pleasant borrowing experience.
Keeping these dos and don’ts in mind can get you the best deal. The good news is that you can now avail a fastest personal loan with a high loan amount with no paperwork and hidden charges from Bajaj Finserv. With just two clicks, eligible customers can get an instant personal loan from Bajaj Finserv in just 20 minutes. This loan comes with a hassle-free 100% digital process, which makes getting a loan faster and simpler without even having to step out of your home!
With pre-approved offers, existing Bajaj Finserv customers only have to check the pre-filled online form and avail the funds right away. New customers need only fill a short online application form and submit basic documents. Whatever your reasons to take a personal loan, this instant loan is an ideal way of getting funds. To get the money you need instantly, simply check your pre-approved offer.
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