Whenever you are stuck in any financial emergency, you apply for an instant personal loan online. But before applying for an instant personal loan online, it is always advisable to have proper knowledge about the entire process, as it improves your chances of getting approved and also protects you from future risks.
Your credit score, interest rate, fees, charges etc., are to be considered before applying for a loan. But, apart from these, there are still some additional points which are to be considered but are rather ignored.
Though personal loans are easy to access, ignoring some of the things that you should care about can lead to big mistakes and you might land up in financial trouble. Here are some points which you need to consider before applying for a loan with any lender!
- Calculate your loan EMI – Most of the instant personal loans available are unsecured, hence interest rate is a bit more when compared to other secured loans. The interest rates vary based on your profile. To get an idea about your estimated EMI, use a personal loan EMI calculator. By doing so, you can decide whether to have a personal loan or not and plan your budget and finances accordingly.
So if you have prior information about your EMI, before applying for the loan, you can ease your tensions.
- Compare the interest rates – You can avail a personal loan from many lenders like banks, credit unions, NBFCs (non-banking financial companies) etc., but the interest rates vary from one lender to another. So, it is advisable to conduct research on the interest rates offered by various lenders and proceed ahead. This way, you can minimize your financial cost.
- Borrow only what you need – Based on your creditworthiness, your lender may approve you for a higher loan amount than what you need. It might look appealing but remember that repaying such a huge amount can be painful for you. So, it is always recommended to analyze your needs and think about your budget before applying.
- Check your CIBIL score – Your CIBIL score is another deciding factor to approve your loan. Every lender considers your CIBIL score and having a low CIBIL score can only reject your application. So, checking your CIBIL score before applying for a loan can give you an idea of whether your loan request will be approved or not. But, there are a few lenders (NBFCs) who approve your loan even if your credit score is less.
- Check for any other charges – Costs such as processing fee, GST charges etc., are to be considered as all these together contribute to your total borrowing cost when you apply for a loan.
Lastly, keep these simple tips in mind whenever you are applying for an instant personal loan online. If you neglect the basic things, they can create problems in the future, leading to a financial burden. Top lenders like FlexSalary approves your loan on the same day. So, choose your lender wisely.