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Getting an instant personal loan has become very simple these days. However, you need to be careful when taking a loan. This will keep you away from problems and issues later on and you’d be able to repay the loan smoothly as well. Take a look at this article to know more about the factors to consider when availing of an instant personal loan and make the most of your finances.
1. Interest rate –
First and foremost, you need to be aware of the interest rate being offered to you for the personal loan. A personal loan is an unsecured loan and so the interest rates are usually high. The rate of interest can also vary, depending on what your credit score is, the repayment term, etc. Ensure you get a fair interest rate that matches all the other parameters. If you feel the lender is asking for a higher interest rate, try negotiating or look for a different loan provider. Even if you are in a hurry to get the instant personal loan, do not agree to an unreasonably high-interest rate.
2. Affordability –
The personal loan will allow you to address your immediate financial requirement, but then, you will have to repay the loan too. Make sure you can afford to pay the EMIs each month. If you are struggling financially now, will you be able to keep the EMI sum aside each month? You have to ensure the personal loan is affordable, as being unable to repay the loan can land you in great trouble and also dent your credit score.
3. Evaluate the need –
Then, you need to properly evaluate your financial requirement for which you want to avail the instant personal loan. It is not advisable to take a personal loan just like that. Unless you have a valid reason, such as a medical emergency or a wedding to pay for, do not go for a personal loan. Randomly borrowing money will put financial stress upon you in the long run and unnecessarily increase your list of liabilities.
4. Borrow as much as needed –
The large NBFCs offer personal loans for amounts as high as INR 5 lakhs. But you should make a list of your requirements and do the math to see how much you actually require. Never borrow more than you need. The lower your loan amount, the easier it will be for you to clear it. So always remember to borrow as per your needs and never get swayed by the available sum.
5. Be aware of your credit score –
As mentioned above, the credit score plays an important role in helping you get the best personal loan. If your credit score is good, you get the personal loan very quickly and at lower rates of interest too. If your credit score is not so impressive, you may not find it easy to get a personal loan and the rate of interest would be much higher too. This is why you need to be aware of your own credit score before you apply for a personal loan. If you know where you stand, you can make a better and more effective application and have a greater chance of getting the loan on favourable terms.
6. Choose a good lender –
There are many personal loan providers these days, but not everyone is reliable and stable. Opt for good and stable loan providers. Navi being one of the most popular instant personal loan apps in India, brings personal loans to you with the greatest amount of ease. You get the loan approved in just about 10 minutes. There is no documentation needed and the process is simple and transparent. It is important to take the personal loan from such a lender as that prevents troubles from arising later on.
8. Read the terms and conditions –
Every lender has its own set of terms and conditions associated with personal loans. Read the clauses carefully and understand everything stated before you sign on the dotted lines.
9. Choose a suitable EMI –
Never be in a hurry to repay your loan. Choose a suitable EMI scheme so that you can comfortably repay the loan. If the EMI is too high, you may struggle to pay it and may even end up defaulting on the loan. Avoid this by choosing your EMI scheme with the greatest care.
Keep the points mentioned above in mind before you opt for a personal loan and the process will become smoother and easier for you.
The bottom line
A personal loan can bail you out of a financially sticky situation. However, it is your responsibility to ensure you repay the loan properly. To ensure this happens and you don’t face any hiccups in the process, you need to evaluate all the factors stated above before you take the personal loan. This will make the overall process smooth and rewarding for you.
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