6 Mistakes to Avoid While Applying for A Personal Loan
Seeking a Personal Loan can be an ordeal, and sometimes despite all your efforts, your loan application could get rejected. So, how do you make sure that your next Personal Loan attempt isn’t a disappointment?
Below is a list of some of the mistakes to avoid while applying for a Personal Loan, which will help you bypass some of the pitfalls of the application process. Several financial service providers, like Bajaj Finserv, who offer an easy online application process for Personal Loans, have services you can avail of to make the process less stressful.
- Failing to Consider Your Options: This is one of the most common mistakes made while applying for a loan. More often than not, you tend to gravitate towards banks that you have had dealings with previously, which may not be in your best interests. Make an informed decision by comparing interest rates of several banks. Once you’ve done so, you can opt for the scheme that best suits your requirements.
- Disregarding Credit History: CIBIL scores are more important than you think. All financial institutions that lend money have access to your credit scores and these scores play a major role in the lender’s decision to offer you the loan. If you maintain a good track record, backed up by a solid CIBIL score, your loan is likely to be approved.
- Failing To Disclose Other Loan Details: This can end end in a disaster for you. The main objective of banks is to make the most out of any business deal. Hence, it is natural for them to offer you a higher loan amount, which is beneficial for them. If you fail to disclose your loan commitments, there is a good chance you will sign on for more than you can handle.
- Uncertainty Over Loan Amount: You need to be absolutely sure about the loan amount you are applying for. Giving lenders a range or approximations is not an effective way to gain their confidence. This can be counterproductive as they may assume you are unreliable and unsure. It could result in your loan application being rejected.
- Not Familiarising Yourself With The Fine Print: Before taking a loan, you need to thoroughly peruse the fine print in the institution’s loan agreement. Clear any doubts you have with them and nail down the rate of interest and other processing fees. Most banks don’t allow the foreclosure of loans and if they do, they charge exorbitant amounts of money as penalty.
- Figure Out If a Loan Is Absolutely Necessary: A Personal Loan gives you a certain amount of freedom. You can spend the money anything. This is why these loans have high interest rates. However, Personal Loans are easily available provided that you meet the basic eligibility criteria. Bajaj Finserv, for instance, offers loans up to 25 lakhs with instant online approvals within 90 seconds.These aforementioned points are some of the most common Personal Loan mistakes and can be easily avoided with a little research and diligence.