Read How to Pick Best Personal Loan Option & Check Eligibility Before Application
- March 17, 2023
A Personal Loan is an unsecured loan offered by various lenders without any end usage restriction. Before applying for an instant Personal Loan Online, a borrower must check eligibility using the Personal Loan eligibility calculator. This will help to avoid any confusion and delay in the loan process. Usually, a borrower avails of a Personal Loan to fulfill any financial requirements. An instant Personal Loan online can be used for weddings, travel, home renovation, higher education, etc. For these expenses it is easy and fast to get small personal loan from SCCU. Personal Loan Interest is one of the major factors that influence Personal Loans.
Read to more about how to apply for home loan online
Below are the factors that will help you pick the best Personal Loan Options:
Compare the Rate of Interest
The interest is charged by the lender on the borrowed money, also called the principal amount. There are several lenders in the market offering different rates of interest. As a borrower, you must compare the interest rates provided by numerous lenders in the market. Choose the lowest interest rate for the Personal Loan provided by the lender. This will help you reduce the overall monthly outgo while repaying. If you already have an ongoing relationship with your lender, there are chances that you might get a Personal Loan at a lower interest rate than their other customers. If the interest rate is favorable, it is advisable that you apply for an instant Personal Loan online with the existing lender instead of searching for a new one.
Check the Eligibility Criteria
You can check Personal Loan eligibility by using the Personal Loan eligibility calculator. Checking the Personal Loan eligibility criteria is one of the primary steps while applying for a Personal Loan. There are various lenders in the market with different requirements and eligibility criteria. Your initial research while choosing the lender will help you choose the lender with simple Personal Loan eligibility criteria. Following are a few of the criteria that a lender asks for; a borrower must be between the age of 24 and 58 years and should be an Indian citizen with full-time employment for at least 2 years. Lastly, a minimum of ₹40,000 monthly salary is a must for qualifying for a Personal Loan. Please note that these requirements could differ from lender to lender.
Check the Documentation Process and Requirements
The documentation process allows the lender to identify the information provided to the borrower. It also helps in understanding the creditworthiness of the borrower. You must check the list of required documents before applying for a loan. This will avoid any delay during the document submission and verification. You can check the list of documents on the lenders’ official website. Here is the list of documents that a borrower must submit to the lender: KYC documents like an Aadhaar/PAN Card, Current address proof (Passport/Utility bills/Rent Agreement), Latest salary slips, and salary credit bank statements from the last 3 months and Proof of employment, such as official mail ID confirmation /Emp ID Card.
Choose the Right Loan Amount
A loan is an amount borrowed from the lender for a pre-decided rate of interest and tenure. There are various factors such as your CIBIL score, monthly salary/income, employment, and age. A lender usually checks all these factors before the loan approval. A borrower with a CIBIL Score higher than 750 is more likely to get a high loan amount with a lower interest rate. In such cases, he/she is considered more creditworthy in the eyes of the lender. A borrower with a poor CIBIL score is considered less creditworthy for the loan. It is advisable that you check your CIBIL score before applying for a loan. It will help you avoid rejection which could negatively impact your CIBIL score.
Choose the Right Tenure
For a Personal Loan, the period ranges from one year to five years. Before applying for the loan, you can use the Personal Loan EMI calculator to plan your monthly EMIs. A longer tenure will help you reduce your monthly EMIs. On the other hand, a shorter loan tenure will help you pay out the interest quickly. Using the EMI Calculator, you can adjust your tenure, loan amount, and rate of interest accordingly to check your monthly EMIs. You can either use a manual calculator using the formula or visit the lender’s official website for an online EMI calculator.
Compare the Fees and Charges
There are various charges and fees such as processing fees, loan cancellation charges, past due payment penalties, and other similar charges and fees that a lender levies on the borrower. A borrower needs to check all these charges before signing the final documents. Generally, the processing fees of up to 2% of the total loan amount plus applicable taxes