During financial emergencies, availing a Personal Loan can be a viable option for multiple reasons. Firstly, it is an unsecured assistance i.e is you do not need any collateral to avail this loan. As there is not security taken against Personal Loan, its rate of interest is can be high. Also, it is readily available through lenders post easy verification. But applying for it through a bank can be tedious given the lengthy process, stringent criteria for eligibility etc.
Today, there is a wide range of instant Personal Loan apps that have made the process of availing funds simpler and faster than the traditional banks. In today’s fast-moving world, rarely you may have time to follow up with banks, wait for the verifications etc. instant have made it very easy for individuals to apply for Personal Loan by providing a single platform that caters to almost all the needs of their customers.
However, there might be a few things to keep in mind before you avail an instant Personal Loan online, just to avoid having an unpleasant experience in your loan journey.
1) Defining a purpose –
A personal loan comes with no restrictions on its end-use. It can be used for any purpose you want – Travel, Education, Marriage, Home renovation etc. Hence it would be helpful if you have a clearly defined purpose for which you need an instant loan.
2) Drawing an estimate –
Now, whatever may be the reason for which you need a Personal Loan, you have to be certain of the amount that you require to fulfil it. Having a rough estimate will always help you plan your finances better and might help you in spending the amount in the right direction.
3) Knowing your Credit Health Report –
Your CIBIL score is a significant parameter that is taken into consideration before the approval of your Loan. It is important to analyse your Credit Health Report and improvise on your shortcomings. An ideal score would be 750 and above to get speedy approval for your instant personal loan.
4) Managing your existing finances –
Your salary gets spent on several things. It is important to ensure that enough amount is remaining to pay an EMI; AFTER fulfilling your basic needs. Only after thorough planning, you can make sure that you would be stably paying your EMIs for Personal Loan on time. A shaky budget can further lead to chaos.
4) Calculate in advance –
Most of the Personal Loan apps have EMI calculators available on their platform that can help you get an estimate of the EMI, interest, and tenure of your loan. Hence, get a rough estimate beforehand. This can help you have a better understanding of how much you might have to spend on an EMI later. It will also give you an idea if it is affordable or not.
5) Documentation –
To get a speedy approval of your Personal Loan, you must have all the documents that are requested by your lender ready to be produced. Get a complete list of documents from your lender beforehand and collect all the enlisted items in one place for your convenience. Generally, you may need your KYC, ID proofs, Income proofs, etc.
6) Think about Flexi Personal Loan –
Flexi Personal Loan is a new concept in the market and is gaining popularity rapidly. In this, you are given a line of credit based on the strength of your credit health report. From this line of credit, you can avail as much amount as you need. You will be charged interest only on the amount you have used from the sanctioned credit line.
7) Popular Personal Loan apps –
Early Salary, Bajaj Finserv Personal Loan app, Money Tap, Tata Capital are some of the popular apps where you can apply for an instant personal loan online.
Once you’re clear on the above-mentioned points, you may be all set to apply for a loan online!
