Instant personal loans in Chennai are a convenient credit option to manage unprecedented financial situations. However, every financial product has several terms and conditions associated with it. Hence, being educated about such regulations can aid individuals in ensuring that they are making the right decisions.
Borrowers should have a clear idea of the purpose of instant loan in Chennai, its amount, tenor and their repayment capability. It will ensure that they repay their credit on time and do not default. Defaulting EMIs can leave an adverse effect on their credit score.
To help prospective borrowers with their financial planning, here is a list of 7 things that everyone should keep in mind before applying for an instant personal loan.
7 essential thing to know before taking a personal loan
- Understand the eligibility criteria
Every lender has its own set of personal loan eligibility criteria. Therefore, it is vital to check the required standards of a particular lender before applying.
It primarily includes age, nationality, income, employment, city of residence, etc. Failing to fulfil the eligibility criteria may result in unnecessary delays or an outright rejection.
- Gather the necessary documents
A successful personal loan application includes submitting the required documents. Therefore, borrowers can arrange these papers beforehand to save time. They can find the list of documents on the website of a lender.
- Calculate the EMI in advance
Calculating EMIs beforehand decreases the chances of rejection of a loan application. Borrowers can take help of personal loan calculators available online for this purpose. Moreover, it will help them in preparing their repayment strategies.
- Read about the interest rate and associated charges
It is imperative to gather as much information as possible before opting for any personal loan. The first step here is to enquire about the interest rate. Prospective borrowers can visit the website of a lender or talk to a representative of the company for this purpose.
Furthermore, borrowers should know about the associated charges of a personal loan. In case they fail to calculate these charges, it may burden them with additional expenses. Therefore, read the fine print of a credit before availing one.
- Check the prepayment facilities
Lenders offer the provision to prepay an instant personal loan if a borrower wishes to. However, these facilities are not always free, and financial institutions may charge a small fee. Thus, individuals must check the terms and conditions of prepayment in advance.
- Perform an assessment of debt-to-income ratio
Debt-to-income ratio portrays the portion of an individual’s monthly income that goes towards fulfilling other financial obligations. In case this ratio is above 50%, lenders may reject that particular credit application.
- Take note of additional features
Lenders often have other features and benefits associated with their personal loans. For instance, Flexi Personal Loans offered by Bajaj Finserv allow borrowers to withdraw money as per their requirement. Interest on such loans is also charged only on the withdrawn amount.
Additionally, the NBFC offers low interest personal loans of up to Rs.25 lakh at an attractive interest rate and flexible tenor.
Furthermore, they also provide pre-approved offers on its financial products like personal loans, business loans etc. This offer aims to reduce the hassle of a loan application process and subsequently saves time. Borrowers can check their pre-approved offers by submitting their essential contact details.
Instant personal loans are ideal to help individuals deal with a liquidity crisis at any point. However, they must keep in mind the above mentioned pointers to ensure a smooth and hassle-free experience.
