5 things to know before applying for a personal loan in India

applying for a personal loan in India

Achieving financial wellness is one of the most important things needed for living a good life. However, the cost of living has risen so exponentially that it has become quite difficult to attain financial wellness. Thus, many of us are forced to borrow and pile up heaps of debt over our shoulders. But now, thanks to the capital assistance offered by the new-age financial institutions, one can breathe with a sigh of relief! This financial assistance is offered by the new-age banks and NBFCs (non-banking financial companies) in the form of a personal loan. So, let us take a look at the 5 things that you must know before opting for a personal form of a loan in India, and they are

  • It is unsecured in nature: A personal form of loan is unsecured in nature; meaning, you don’t have to provide any sort of collateral to make use of it. Further, you can make use of the capital in any way you want- you can either purchase a brand-new gadget or even consolidate your existing debt. Other than that, you can even make use of the money to sponsor that last-minute trip of yours to an exotic destination.
  • You can obtain financial assistance at lower interest rates: There are a number of new-age banks and NBFCs (non-banking financial companies) that have started offering financial assistance at way lower personal loan interest rate than that of a traditional financier or loan shark. Further, you can even compare amongst the ton of financial institutions to find the one that will provide you with the lowest possible interest rates.
  • Flexible repayment options: One of the better things about a personal loan is that you get to make flexible repayments in the form of EMIs (equated monthly installments) over a period of time. Thus, you can easily plan out and repay your debt without making any defaults. Other than that, the financial institutions even provide you with an EMI calculator on their online websites or aggregator sites for you to calculate your installments. Thus, you can compute and calculate your installments on the basis of the principal borrowed amount, interest rates and repayment tenure opted by you for free-of-cost.
  • You need to be eligible: The financial institutions will only sanction your loan amount as long as you meet the eligibility criteria given out by the financial institutions. Further, these eligibility criteria differ from one financial institution to another; thus, ensure that you check it before applying for a loan amount. The basic eligibility criteria set by the financial institutions include your income source, job stability, credit score, history, etc.
  • Other charges: Besides your personal loan interest rate, there are a number of other charges that you may have to shell out in order to make use of a personal form of a loan. The other charges include your processing fees, late repayment fees, check bounce charges, foreclosure fees, etc.

Thus, these are the 5 things that every person should know before applying for a personal loan in India. Good luck and all the best!