Follow These 8 Ideas Before Availing An Instant Loan Through Mobile App
Instant Loan – Whether to pay off past debt or cope with a medical emergency, a personal loan can help tide over a financial crisis. It can be the best option when you are pressed for cash and require financial assistance. You can avail a personal loan without keeping your valuable assets as collateral. Several lending institutions have introduced instant loan app to offer financial aid to borrowers.
If you are contemplating taking a personal loan online or via a loan app, here are eight smart tips that you can use before availing the loan.
- Compare Different Lenders- Most lending institutions have an online presence. Here, you can read the fine print in detail, interest rates, and loan application procedures. It is an excellent idea to compare various lenders and select the one that best fits your financial requirement.
- Know your Eligibility-Lenders assess your loan eligibility based on certain factors such as your credit score, income levels, age, and existing loans. A credit score of 750 and above is considered useful to apply for a personal loan. If your credit score is lower than 750, you may want to try and improve it to increase your chances of loan approval.
- Avoid Multiple Loan Applications-You may want to compare quotes from various lenders. But, in doing so, you would need to take care that you are not applying for a loan from any of them. This is because every loan application elicits a credit report search and multiple entries on your report can raise a red flag to the lenders.
- Limit what you Borrow-Say, you need a loan of Rs.5 lakh, but obtaining a credit of Rs.10 lakh just because you are eligible for it may not be such a good idea after all. Here, you would want to ascertain your needs and borrow accordingly. By limiting your borrowings, you can save yourself from getting into a debt trap.
- Check the Foreclosure Clause- If you repay the loan amount before the intended duration, some lending institutions may penalize you. So, if you choose an extended repayment tenor but think you can prepay your loan, look for a loan with the lowest foreclosure charges.
- Keep the Tenor Short-In most cases, lending institutions grant you an extended repayment tenor when you are highly eligible for a loan. But while a longer repayment tenor means lower EMI, over the years, you could end up paying a higher amount to the lender. So, while it may appear affordable, it is best to keep the tenor short with manageable EMIs.
- Assess the all-in cost-Identify additional costs such as processing fees or late payment fees, if you miss an EMI. Penalties on late payments and charges can add up to a large deal over the years.
- Read the fine Print-Don’t let your loan application be one of the instances where you get trapped in false promises. Avoid falling into this trap by understanding all the terms and conditions of the loan in writing. You could seek professional help to grasp clauses and stay informed.
You can avail of a loan from the Loan Apps available in the market. You can apply for the loan by downloading Bajaj Finserv App directly. It offers loans up to Rs.25 lakh with a flexible repayment tenor between twelve and sixty months. The loan app requires minimal documentation, ensures quick loan processing, and the money can get credited in your account on the same day. In addition, it allows you to manage all your loan transactions, view your statement of accounts, and keep track of EMI due dates all at one place. Besides, you can check the pre-approved offer on your personal loan by providing your name and contact number.
