By the end of February 2020, personal loans grew by 20% YoY and now hold 8% of the entire loan book of financial institutions.
Consequently, it is anticipated that a significant number of individuals will be encouraged to avail of such loans and meet their requirements accordingly. Though the slashed rate of interest may tempt most borrowers, they must also weigh in other factors to select the best personal loan for them.
Things to look for before availing a personal loan
Here is a list of things that individuals must look for in a personal loan to make the most of it.
Before applying for a personal loan, individuals must check the associated eligibility criteria to prevent their loan application form from being rejected. Notably, such rejection leaves a hard inquiry of an applicant’s credit report and hampers their credit report.
Typically, these are some of the come eligibility criteria accompanying an extensive loan option an applicant must fulfil.
- Resident Indian.
- Between 23 years and 55 years of age.
- Employed in an MNC, private or public sector.
- A stable income meeting the minimum requirement fixed by the NBFC.
- CIBIL score of at least 750.
Nevertheless, individuals can avail a personal loan for low CIBIL score. All they need to do is follow a few specific tips to avail a personal loan when they have a bad CIBIL score.
A personal loan that can be availed by completing a simple documentation process is regarded to be a less cumbersome way of availing financial assistance. Most leading financial institutions require applicants to submit a set of documents to initiate the documentation and verification process.
For instance, KYC documents, proof of income, employment, and financial standing, and passport-sized photographs are required while applying for a personal loan.
Loan value and processing charges
Individuals should look for an unsecured loan that extends a high value at feasible charges. The high loan value will help them meet their requirements effectively. On the other hand, feasible charges make the loan affordable for borrowers and facilitate easy repayment.
To ensure ease of repayment, applicants can avail a Personal Loan from leading financial institutions like Bajaj Finserv that is transparent about the processing charges.
They also provide pre-approved offers to their customers to make the process of availing credits less cumbersome. Such offers are extended on several financial products like personal loans, business loans, and more. You can check your pre-approved offers in a few steps by entering your name and contact number.
The best personal loan options come with a reasonable rate of interest, which allows borrowers to repay their debt easily. Regardless, it must be noted that the rate of interest tends to vary from one financial institution to another. Also, it depends on several factors, like the applicant’s job and income stability, creditworthiness, etc.
Individuals should look for a loan option that comes with a flexible tenor so they can repay as per their convenience. However, they must understand that the tenor of a loan has a significant role when it comes to loan EMIs. Typically, the best personal loan comes with a repayment tenor that ranges between 12 months and 60 months. Individuals can use an online EMI calculator to find the right personal loan tenor that works for them.
Besides these factors, intending borrowers should also weigh in factors like the loan application and loan disbursal to make the most of the financial aid. For instance, one of the best personal loans follows a quick loan approval and disbursal process, and this enables borrowers to meet their immediate financial requirements quite easily and effectively