Checklist for first-time personal loan applicants
A personal loan is the best financing option that covers all the expenses. You will get the emergency funds to finance small to big expenditures. Getting a loan is easier nowadays. At LoanTap, we provide personal loans with affordable interest rates. With the online loan application process, first-time applicants can get the loan hassle-free. A personal loan can be approved and disbursed within hours.
We help you get custom, two-wheeler, house, and other personal loans. If you are a first-time borrower, consider a few things while applying for a loan.
Choose the Right Lender
Several banks and financial institutions are offering personal loans at attractive interest rates. Also, They are loading borrowers with benefits with a personal loan. Choosing the right lender is still a tedious task. It is easy for borrowers to fall for the spammers who promise to offer the best financial products. They will call and text messages to lure borrowers to fall into their trap.
So, make sure you take a lot of time to research and find the right lender. If you want an instant loan, compare the loans and other various credit options from reputed lenders. You can make an informed decision with deep research. There are other financial institutions, such as LoanTap, where you can consult and get the best financial solutions to tackle any emergency.
Prepare your Documents
With digitalization, NBFC and banks can provide financial services online to reach more customers. So, borrowers will get the loan through a paperless loan application process. When you apply for a personal loan online, you need to fill out the application and submit the required documents.
Most lenders will ask you the minimal documentation such as identity proof, address proof, income, and bank statements. All the required documents will help in verifying the personal loan application. So, make sure that you should keep these documents in handy. Listing out the documents will make sure that you"re borrowing the first-time personal loan stress-free.
Many banks and financial institutions impress customers with flat interest rates. However, Borrowers must research the loans that demand at affordable interest rates – both flat and reducing. Make sure you check the rates offered by all lenders on your shortlist before you finalise one.
It is important to always carefully calculate your interest component before you agree with the personal loan terms. You can work out the ideal EMI by using an EMI calculator and comparing rates.
Lenders charge interest and processing fees for personal loans. In addition, there may be other charges specific to each lender. Some lenders may charge a prepayment penalty in case of foreclosure. All expenses add to the cost of the loan and should be taken into account while selecting the lender. Make sure you consider all costs while comparing lenders.
Make sure you are aware of all the fees before taking a loan. At LoanTap, you will have to pay a nominal processing fee. There are no prepayment charges if you foreclose after six months.You may check the interest rates, fees, and foreclosure rules to evaluate the added expenses.
Consider your Liabilities
An instant personal loan is the best way to deal with unexpected expenses. You will get the emergency funds to pay for debts and bills. Besides, borrowers should consider their liabilities while applying for a personal loan online in India. Any existing debt or bad repayment history may affect your loan application approval.
Also, consider your Debt-to-income ratio. It may help you understand that you have the financial capacity to repay the loan. If not, getting one credit facility will increase your monthly debt. Maintain a decent credit score by clearing old debts and taking a loan when your debt-to-income ratio is less than 30%.
Make the Repayment Plan
It is a crucial step to take when you are applying for online personal loans. Repaying the loan can be hectic if you don"t plan it. A repayment plan will help you set up a repayment schedule and make timely payments.
A repayment plan will give you an idea of how to make the repayments. Also, it will show you the amount you have to pay every month. Borrowers can use a Personal loan EMI calculator to know the payable amount as an EMI. You only have to put interest rates, the loan amount, and tenure to calculate the EMI. You can plan the schedule effectively.
Inquire About Foreclosure Rules
Foreclosure refers to paying all the dues before the tenure ends. Different lenders have different rules against the foreclosure of a personal loan. Borrowers usually have to pay foreclosure fees to close the loan prior to the repayment tenure date.
Lenders charge foreclosure fees for compensating the loan interest. You must carefully check the foreclosure rules of the lender.
Keep Track of Undisclosed Conditions
A first-time applicant can go for lucrative deals that look appealing but may have undisclosed conditions. Take a printout of all and inspect them thoroughly. All your plans can be disrupted if you don"t consider them.
Check your Credit Score
A credit score is a crucial part of getting a loan. Lenders use credit scores as eligibility criteria to get qualified borrowers. Every lender has set a credit score bar that you need to meet to get the product. Your loan will be disbursed on the same day if you have a good credit score. You may get a quick personal loan with lower interest rates. So, try to maintain the credit score by paying all credit dues on schedule.
All these points will help to find the right lender. Your financial situation may tell you whether or not you are capable of taking a loan. It ensures that you pay the loan amount smoothly.
So, stop worrying and avail Personal Loan from LoanTap, this will also help you improve your credit rating.
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