Tips to get an instant personal loan in 2020

When looking for a personal loan, what are the essential things you should look for? It is right a personal loan will help you out in coming out of some bad financial situation. But what essential things you should keep in mind?

This blog explores those tips to help you out in the critical matter. We will give you tips along with examples to understand the things better. Once you have read it, you will have a better perspective on it.  For example, let’s say you are searching personal loan for self employee, then what are the things that you should look for? The eligibility criteria, the required documents.

These tips will help you in finding a better lender, thus a better personal loan.

Do you need a personal loan?

Before anything else, you have to ask this question. Do you need a personal loan? Isn’t their any other financial option which you have. The reason is a long term commitment. You probably will have the loan tenure from  1 year to 5 years, depending upon the loan amount.

First, look out for other options; only when you see there is no other option, then turn to a personal loan.

Research, Research, Research

Because of the internet, there have a plethora of lenders appearing online and offline. Every lender claims to offer the best thing for the borrower. However, it would help if you researched the lender online as well as offline. Make sure to check their official page, their app page, reviews, and other details.

Every lender will have a different loan amount, the rate of interest, and other things. Choose the offer which will work for you. For example, see what features the lender will offer you. Is there a personal loan balance transfer facility if you want to fuse two loans into one loan?

Look for the lowest rate of interest.

It is a known fact that personal loan tends to have a higher rate of interest. There are two reasons behind it. First, a personal loan is an unsecured loan. the second reason is, a borrower does not have to submit collateral to get a loan.

So, this is why even a fraction of change in interest rate would result in pouring out a large total amount. To get the best interest rate, make sure to check a few lender interest rates. Here we are mentioning some of the lenders and their rate of interest.

 What is the eligibility criteria?

Every lender you check out, the first thing you have to look for is the eligibility criteria. Narrowing down a lender is not the issue. The issue is to know whether you will qualify for the loan or not. Let’s say you applied to three lenders without seeing the eligibility criteria.

You only saw the loan amount it offered and the low-interest rate. Suddenly you have found out two applications have been rejected, and the third one is accepted, but for some reason, the interest rate is so high, resulting in declining the offer.

There are enormous implications for this action. First, your credit score will down. The second thing is when you apply next time, a lender will hesitate to accept the loan application.

Here we are giving two lender’s eligibility criteria as an example.

• Eligibility criteria for Indiabulls personal loan

1. The applicant should be an Indian citizen.
2. The applicant’s age should be above 21 years.
3. The applicant should be a salaried individual or self-employed professional.

• Eligibility criteria for Bajaj finserv personal loan for the self employee.

1. The applicant’s age should be between 22 years and 55 years.
2. The applicant business should be up and running for minimum 3 years.
3. The applicant’s credit score should be a minimum of 750.

 We can see how every lender has different eligibility criteria. Checking it out before applying would immensely help us out.

Do you have a high credit score?

Do you have seenthe Bajaj finserv eligibility criteria? There we have mentioned the credit score. You should know, upon applying. First, a lender checks the credit score. If the credit score is good, only then the lender will proceed with it. Otherwise, you have to look for another lender.

The reason is a lower credit score means the rate of interest and other charges may end up being higher than usual. It also indicates the borrower’s financial condition. The credit score ranges between 300 and 900. 750 is considered ideal. Lower than this generally results in getting a high-interest rate.

Some factors which affect the credit score.

1. Pay the bills on time.
2. Have the low credit utilization ration
3. Do not get multiple credit cards

These factors would help you out in reaching a high credit score.

What are the additional charges?

Now, here comes the real thing. Before finally choosing a lender, make sure to check out the additional charges. Do not think there would be few. There are processing charges, document charges, bounce charges, late payment charges, and other charges that would vary from lender to lender.

Read everything before you sign the loan letter. Ask the lender clearly, what other charges there will be. If you are still not sure, read the loan agreement. Everything will be mentioned there.

The loan tenure

In last, always see if you could get an ideal loan tenure as per your requirement. No one knows better than you about when you will be able to pay the full loan. is it going to be 1 year, 2 years, or 5 years? So, the lender will offer their own loan tenure, but you have to make sure to get your own loan tenure through negotiations.

So, these are the tips that you can follow to get an instant personal loan in 2020. If you need more help with it, do let us know. We would be happy to help you out.,