Are you aware about the Do’s and Don'ts while you are applying for a Personal Loan ?
In this fast paced economy where prices of the most basic commodities are rising up faster than crypto currencies it is not easy to manage the bigger expenses. You are sitting online, you are searching for the ‘Best Personal Loan in 2021’ on your device. The reason could be anything, it could be a medical emergency, a family marriage, a small business venture, raw materials or machinery for the business you own or maybe a long abroad vacation. Whatever is the reason for the sudden anxiety that forced you to open up your laptop and search for the best personal loan plans in India, the whole point is lost if you are not aware about the Do’s and Don’ts.
Today, we’ll break down all the hacks for you so that next time you are looking for theBest Personal loan in India, you know what to do and what not to do! Let’s Begin :
Make up your mind before you apply:
Unlike other loan types like car loan, education loan or Home loan where you borrow for a particular purpose, personal loans are usually taken to finance a particular emergency requirement, like marriage, small business requirements, so make sure that you are completely sure of your purpose and you have the ability to pay back the borrowed money on time. Although the average interest rates on personal loans vary between 10-11% which is comparatively much lower than other loan types and credit cards, you still have to pay back a lot of money to your lender, so be sure before you actually go ahead with your personal loan application.
Always look for the Cheapest Interest rate:
Always remember one thing, the loan amount you borrow includes a principal amount and a interest rate, so when you pay an EMI, you will be paying both. So, the first thing to do is to check for the cheapest personal loan options in terms of interest rates. The lower the interest rate, lower will be your total outstanding at the end of your repayment tenure. These days, it is a piece of cake to find out the cheapest interest rates online. If you want to check out some personal loan offers, click here. At Creditkaro, you can find the best suited personal loan options for you at low interest rates.
Fixed obligations to income ratio
This is one point you cannot miss out on! Remember, your monthly obligations ratio is hovering around 30%-50%. This allows the bank/lender to make sure that you are capable of making the repayments every month. It is very important to keep a clean profile so that you can get approved sooner than expected and the required amount is disbursed to you in time.
Look Out for Offers and Promotions
The best part about looking for the best personal loans online is that you get to look at multiple options at the same time and you can choose from the best plans in the market. You can simply visit Creditkaro website or download the app and choose from multiple personal loan options. Find the best interest rates, find the most suitable plan and just apply! It's that easy.
Use EMI Calculator
When you are looking for the Best Personal Loans online, make sure you use a personal loan EMI calculator to check the total cost of your loan before you actually apply for it. It is very important for you to understand how much amount is the total due after including the interest. You can do this by simply visiting Creditkaro.com where you get a customized personal loan calculator.
Ignore your Credit report :
This is the worst thing you can do. As a borrower you should always keep in mind that banks and creditors always look for a trustworthy borrower. Your trustworthiness depends on how good your credit report is. The better your credit report, the better are your chances of getting approved sooner than expected by your bank/lender. If you want to make sure that 90% of the lenders are flexible giving you money on favorable terms, make sure your credit score is above 750. If you go lower than this your chances of getting approved on your terms will get slimmer with every falling point.
Use Loan Money Recklessly
Another dumb thing to do is spend the loan money recklessly without any planning and forecast. If you spend the borrowed money on unnecessary things, soon you will go broke and will not have the funds to repay the bank/lender on time. You could start missing EMIs and that will mount up on you as a huge debt in a short while, and do not forget the interest and late charges that will keep on adding on the remaining outstanding amount.
Apply without Calculating
This is another blunder you must stay wary of. It is easy to calculate the total outstanding amount after including the interest on online platforms. So, make sure you always calculate the total amount before you actually apply. This will help you decide how much you actually want to borrow and if after a certain point of time you will be in a position to pay back the borrowed amount.