The personal loan is one of the best funding solutions to sort out your immediate needs for money. If you have the required personal loan eligibility, you can apply for it to cover your many urgent needs.
Many leading banks and non-banking finance companies (NBFCs) are ready to offer a personal loan. As a result, you can borrow up to Rs.25 lakh at a competitive interest rate on personal loan and a tenor ranging 1-5 years.
However, before you know how to apply for personal loan, you should know some factors or rules that you must consider beforehand. Going through them will help you apply for it confidently and help manage the loan without budget issues.
Consider these rules while applying for the personal loan
1) Check your CIBIL Score
The CIBIL Score is a 3-digit number which is a score given out of 900. It proves your creditworthiness to the lender that you are eligible for the loan. Your income, repayments of current loan EMIs and credit card outstanding make your CIBIL Score. If you have managed it all well, you will have a higher Credit Score. Anything above 750+ out of 900 means that you have a robust Credit Score. Also, having a robust Credit Score lets you apply for the low interest rates personal loan. Do you want to know how to improve CIBIL Score? All that you need to do is pay off your existing loan and other EMIs on time and never default on them.
2) Check out the personal loan eligibility
Another thing before apply for personal loan is checking the personal loan eligibility. Some of the standard personal loan eligibility terms are:
- Your age should be under 23-58 years
You should be working for a private, public limited or an MNC company
You must be a residing citizen of India
To calculate your personal loan eligibility, you can also use the personal loan eligibility calculator. It will help you know an exact amount that will be available for you to apply as the loan.
3) Go for a short tenor
It’s understandable that opting for a longer tenor means paying smaller EMIs. Opting for a short tenor has other benefits than helping to repay the loan faster. It saves you from paying compounding interest rates applicable on a longer tenor. Yes, the interest outgo falls on the principal loan amount when you go for a shorter tenor.
4) Shop around for the best deals
You may get the lowest interest rates on personal loan when you compare multiple deals online. As a result, you may opt for the best option suiting your needs and repayment capacity. To do that, you can land on a third-party website with all listed offers.
A personal loan can work wonders to cover your many needs if you know the discussed loan aspects. You can now apply for the personal loan after assessing your condition and other aspects.
NBFCs offers pre-approved offers on personal loans, home loans, business loans and a lot of many products. Opting for it will ease off your overall loan processing and make it less time-consuming.
Watch this video to know the checklists before applying for a personal loan: