Important Tips to Get Your First Personal Loan

Important Tips to Get Your First Personal Loan

At times, you might find that your overall earnings are not sufficient to mitigate the immediate expenditures. A personal loan can assist you in managing your emergency in a better way and save the day. Note that a personal loan is even called an all-around loan, highly known for its versatility as it can be utilized for different purposes like home renovation, weddings, medical exigencies, child’s higher education etc. At times, personal loans even can be used to assist you clear off your various dues or your plan for additional and unexpected expenditures. With instant personal loans, you get simple access to funds, particularly when you require them the most. 

You can simply get a personal loan if you meet all the requirements and needs of the lenders. Listed here are some of the handy tips or ways to get your initial personal loan with ease –

Fix your credit score –

It is an often-said statement but worth repeating that having a strong​ credit score is crucial for any loan type. A low score shows that you are most likely to default on the loan repayments. Thus, if you hold a low score, it is crucial that you ameliorate it before you apply for a personal loan. Get the credit report and ensure to check the important parameters that led to a low score and work hard towards ameliorating it. 

Compute your personal loan affordability –

Placing the application for a loan amount that you will not repay may lead to application rejection. Before loan sanctioning, the lender must compute your repayment potential based on your regular flow of income. There are various online calculators available. You can even use the Kotak personal loan calculator as well to know your personal loan eligibility. Always, it is good to be aware of your eligibility before placing an application for a loan to avoid any kind of rejection. 

Find the correct lender –

Every lender has distinct eligibility parameters and loan fees. So, in place of placing the application randomly with a few lenders, it is best if you strike a comparison of all relevant factors to zero on the suitable lender. 

Beware of the lender’s eligibility needs –

Every lender has a slightly distinct eligibility parameter for a personal loan. While there are factors like age limit, credit score, employment type, 3-month bank statement etc., few lenders might ask for additional details. 

Ensure to remain patient –

Never place the application with a lot of lenders at once as multiple such inquiries are addressed as hard enquiries, which make each lender with whom you applied to fetch your credit report. Every time the lender fetches your report, it results in a decline in your credit score. Multiple such fetches result in a drastic fall in your credit score. This further lowers your chances of personal loans or approval for other loans. 

Thus, if you work on the above key regions and areas and show yourself as a reliable borrower with a strong score and proper documentation, lenders will not turn down your personal loan. Also, ensure to apply for a personal loan with online financial marketplaces instead of directly placing an application with the lender. Such online financial marketplaces provide you with different lender-linked requests as per your suitability. You can also check your personal loan status by visiting the online financial markets. For instance, if you applied for Kotak Mahindra Bank personal loan through the online financial markets, to check the Kotak personal loan status, you straightaway need to visit the online markets. 

Learn about the borrowing choices –

Your financial requirement might differ, and for this purpose, most financial institutions offer different lending choices. You might require money to purchase gold, purchase a vehicle or go on a vacation. If you require funds for your business, then you may consider opting for a business loan. Thus, a financial solution differs from one individual to another. You can find these specific loans like a car or 2-wheeler loan, home loan, used car loan, durable consumer loan, personal loans, or gold loans. As far as a personal loan is concerned, you must borrow money without any security or collateral. 

Always check your potential to repay the personal loan on time –

A personal loan is usually repaid in EMI forms, and lenders always want to know your repayment potential before approving your application online. For instance, in the case of a personal loan via the digital route, you must upload the following –

  • Valid KYC documents like the Aadhaar card, PAN card, driving license, voter ID or passport. 
  • Past three months’ bank statement
  • Net banking or debit card details to set up your e mandate or e stamp or e sign.

While checking your repayment affordability, it is best to note your debt obligations. You must plan out your monthly budget post considering this. If you are looking to know the EMI proceed, you can use the online personal loan EMI calculator.

Ensure to check the required loan documents –

Correct documents are the key to having a hassle-free personal loan. In the case of a personal loan, the documents required are relatively minimal in comparison to other loans such as a home loan. Lenders will generally ask for your residential proof, identity proof and income proof. Hence, ensure to keep your documents handy to speed up your personal loan approval procedure.

Loan application approval will depend on the relevant document that you furnish in support of the info provided. You can even visit the lender’s website and prepare all documents before making the application. 

An instant personal loan may be useful for mitigating any financial exigencies like medical expenditures and others. You can avail of the digital loan straightaway by visiting online financial marketplaces as they offer a hassle-free and end-to-end personal loan experience. You may apply for an instant personal loan in only a few clicks without the need to visit the bank.

Ending note

A personal loan may be advantageous if availed for the correct purposes. It is crucial to ensure that your lender is 100 per cent genuine and that your repayments are consistent and prompt. And most crucially, not to use the personal loan just for specific important/required purposes.

Alex smith

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