Four Factors to Gauge Before Taking a Personal Loan
A Personal Loan can bail you out in times of financial distress, giving you the opportunity to spend money on only the most important concerns. For example, here are the 7 popular reasons to take a Personal Loan. Although it’s quite easy to apply for a Personal Loan, it’s important to know the nitty-gritties involved, well beforehand.
Here are a few things to know when applying for a Personal Loan.
Maintain a Good Credit Score
Your credit score is often seen as an indirect indicator of your financial health. A low credit rating inevitably makes it more difficult for you obtain a loan from any reputed lender. It’s essential that you check your rating before applying as you need a good credit score for Personal Loans. If you have a low credit score, then you need to make the necessary efforts to improve it. Pay off any previous debts such as credit card dues and try not to be too generous while filing loan applications; this is because your credit score is also affected by the number of loan inquiries you make.
Watch Out for the Interest Rates
Personal Loans are considered riskier by lenders as opposed to other loans because they’re unsecured; you don’t need to put down collateral to obtain one. Due to this fact, Personal Loan interest rates are often quite high. While applying, ensure that your loan’s interest rate is in accordance with your repayment plans.
Be Aware of the Penalty Charges
In case you miss your EMI payments, your lender will charge a penalty on your loan account. It’s crucial to find out all that you can about these charges before signing your agreement. This way, you’ll avoid unexpected setbacks in the future.
Some financial companies also impose a prepayment fee when you decide to foreclose your loan. If you want to avoid this fee, you can choose to obtain a Personal Loan from Bajaj Finserv. Their part prepayment facility allows you to pay back your loan in advance, up to 6 times a year. There’s no limit on the maximum prepayment you want to make, and moreover, you’re charged absolutely nothing when you decide to foreclose your loan.
Double-Check Your Personal Loan Tenure
It’s crucial to take the loan period into consideration before coming to a final decision. Depending upon your qualifications, you’ll be granted a loan amount that needs to be paid back in full within a certain time period.
If you opt for a longer loan tenure, you’ll end up paying a lower EMI amount, but at the same time, you’ll be indebted for a shorter duration of time. On the other hand, a shorter loan tenure means that you’ll need to pay a higher EMI figure for a shorter time span.
You can use a Personal Loan EMI calculator to find out how much your monthly installment will be. Bajaj Finserv offers an online calculator for this very task. This handy tool will give you an instant estimation, depending upon the loan amount, tenure and rate of interest.
These are just a few of the things to remember while taking a Personal Loan. Above all, choose a trustworthy lender who fulfills all your expectations. Consider the attractive financial options that Bajaj Finserv provides. Not only does this company offer Personal Loans of up to INR 25 lakh, but it also approves your online application within a mere 5 minutes.