Personal loans are a boon to anyone who is in urgent need of money. These loans are unsecured which are taken out either from banks or NBFCs for personal emergencies.
These are preferred by many borrowers as there isn’t any collateral required to avail these loans. Hence, they have a higher interest rate than the loans with collateral due to the risk involved in unsecured loans.
Let’s see a few:
Things to Consider Before Availing A Personal Loan
- Assess Your Requirements
Before applying for a fullerton india online personal loan, the first thing to do is evaluate how much you require. Personal loans come with interest. Hence this step is imperative to save you extra money. Use a personal loan EMI calculator to understand your monthly instalments so that you can get a near accurate estimate of your monthly outflow
- Check Your Eligibility Criteria
Get an estimate of the maximum amount you can borrow using a personal loan eligibility calculator. Going through the eligibility criteria will help you understand whether your loan application has a reasonable chance of getting accepted. Additionally, keep all documents like id proof, address proof, salary and bank statements in order for faster approval.
- Negotiate Interest Rates
If you are associated with your lender for a long time, and your credit scores are high, with a stable income and good repayment history, interest rates can be negotiated and lowered. Talk to your financial partner for customized packages before taking the plunge.
- Check For Additional Charges
Though most of the offers may look competitive from the outside, there are additional charges that you may have to bear other than interest rates. Hence, double-check for the lender’s prepayment, processing, and late payment charges before coming to conclusions. Some lenders offer shockingly low-interest rates – but it would be a good idea to figure out whether the interest rate is being offered at a monthly or on an annual basis before making any snap judgements. You must also check for other charges such as processing. Few vendors charge 1-2% of your loan amount, while few charge a flat fee. Hence considering all charges will cost you less.
It holds the same with the prepayment and late payment charges. Check for the penalty charged if you have issues with cash flows. Understanding the extra charges will help you estimate better. Most lenders do not allow for foreclosure of personal loans until a certain number of EMIs have been paid. Most lenders also do not allow for part payments on personal loans. It is advised to understand these terms by talking to the lender before you take the plunge.
- Maintain High Credit Scores
CIBIL scores are essential to get your loans sanctioned. Most lenders look for higher Credit scores above 750 to accept personal loan applications. Additionally, if your credit scores are higher, the personal loan interest rates could be better. Hard enquiries on your CIBIL scores proportionately impact your credit scores. Maintaining a higher credit score can help you in the longer run.
- Do a Thorough Market Research Online
Do thorough market research before you zero down on one lender. Choose a reputed lender which is licenced by the RBI as a registered lender in India and has a good brand. Nowadays, almost all lenders have a robust digital portal. Check their websites to understand their rates or talk to their customer service executive. Do not apply everywhere simply to know rates as it will impact your credit score adversely.
If you are looking for instant personal loans at affordable interest rates, Fullerton India is the right finance solution partner for you. We offer personal loans up to Rs 25 lakhs (subject to eligibility) with flexible repayment tenures between 12 – 60 months We also provide an online process for instant personal loan applications as well as a customer login portal on our website and m-connect app for mobile users so that our valued customers can manage their loan accounts from the comfort of their homes. Apply toget to get a Fullerton India online personal loan.
