Personal loans are short term loans which people opt for in case of various situations like medical emergencies, for vacation, marriage purposes, to buy new assets and so on. Bank gives out various terms and conditions which one needs to fulfill to get a personal loan.
There are certain eligibility criteria which you must fall under to avail a personal loan. This can be your age, employment status, etc. There are various reasons a loan can get disapproved. Before applying for any loan thorough research is a must.
If you are looking for a loan, consider below dos and don’ts to avoid rejections.
– Make sure you have a stable income: Before lending you a loan, the lender will check whether you have a stable income monthly. Without a salaried job, it is difficult to get a personal loan. If you make a frequent job change, this might affect your loan status. Also, you need to have a minimum monthly income to avail any sort of loan.
– Repay on time: If you already have existing loans or EMIs to pay, make sure you pay on time. Your credit score is highly affected by your timely repayment.
– Use credit card responsibly: If you own a credit card, use it responsibly. Don’t over go with the credit use and be in debt. Make timely payments and avoid extra fees. You will not only end up paying more money, but your credit score will be poor as well.
– Error-free application: Be careful while filling a loan application. Make sure the forms and all the documents are error-free. State the genuine facts and documents as the banks and all the financial institutes do a thorough background check.
– Compare loans: Before opting for a loan, always compare your options. You might find some loans offer low-interest rates which will be beneficial for you.
– Don’t opt for multiple loans: If you think taking multiple loans to help you out is a good idea, then you might be wrong. This can be very harmful to your financial security.
– Online personal loan: Instead of relying on offline loan, do check online personal loans provided by loan apps or websites. The documents required are minimal and the process is much quicker than the offline loans. You can take a loan starting from Rs. 10000 to Rs. 2 lakhs. The entire process can be completed online and there is no need to visit any physical branch. These are short term loans, which means the interest rates are quite competitive. The best part about personal loan apps is that you can check the interest rates and your eligibility on the app itself.
Keep these points in mind while applying for a loan and make your loan process hassle free.