There are different purposes for taking a personal loan like meeting wedding costs, for medical expenses, planning a vacation, create a credit history, buying a used car, etc. To avail a Personal Loan, here are 4 quick tips that will help you:
1. Check all possible alternatives
Personal Loans are unsecured loans; hence they are costlier as compared to other forms of loan. There are alternatives like loan against gold or other securities, which need to be considered before applying for a personal loan because they come at a cheaper rate than personal loans. Hence, only if you do not have any other alternative, then go for a Personal Loan.
2. Look for different modes of getting a loan
With the advancement of technology, there are other options available than traditional lending. So before heading out to the banks, with a big bunch of papers in your hand to avail a Personal Loan, checkout other options like P2P lending and online marketplace lending. These options are not just quick, easy, convenient, and hassle-free but they can also reduce your processing time, enabling you to get the funds quickly. This helps you to compare various deals and offers and choose the one that suits you the best.
Make a habit of checking all the requirements needed for a personal loan beforehand. It is always wise to make a checklist of all the documentation required and to procure the same. Though it may take some time, but if your documents are complete, there are higher chances that your loan process would become smooth. Often, incomplete or ambiguous documents become a reason for rejection of loan application.
4. Jump in with reasonable expectations
Before applying for a personal loan, consider factors like salary, repayment capacity, co-applicant, etc. and make reasonable expectations about the amount of loan, interest rates, and EMIs. For instance, if a person’s monthly salary is Rs. 18,000 (after all the deductions) then he or she must not apply for a personal loan of Rs. 15-20 lakhs as this might cause an outright rejection of the loan application. Also, while applying for a personal loan, one should remember that it is an unsecured loan and hence the interest rates might be slightly higher. So, you must consider your repayment capacity and then take the plunge.
These tips will surely assist you to get your Personal Loan sanctioned quickly and with relative ease.