Important steps to take prior to applying for a personal loan.

applying for a personal loan

Sometimes, walking down the personal loan route to get financial help is your only option – it is and has been for thousands of people before you and will be for thousands after you! Moreover, you’ll be glad to know that technology has played a major role in making such finance solutions very accessible and quick. In fact, getting a loan today is akin to child’s play or ordering jeans online.

It has become so easy that people forget the magnitude of such finance solutions. But one must remember that a personal loan is a form of debt and usually involves large amounts of money. Therefore, you should always do your homework before you apply. The following article will contribute to your preparation by highlighting some of the most crucial steps one should take before putting their name on the personal loan application form.

1. Visit aggregator sites.

Comparison is like salt, minute but crucial. Without proper comparison, you could end up with a loan that you deeply regret taking. And aggregator sites make it easy to compare. The usually list all the top lenders in India and highlight their personal loan interest rates, loan amounts, tenures, and processing fee. This way, you can get a fair idea of all the loan offerings out there in just a few minutes!

2. Hit up an eligibility calculator.

Find an eligibility calculator and make sure to use it before you apply. If you apply for a loan amount without checking if you’re eligible for it could result in a rejected loan application. Besides for the disappointment, you’ll also end-up losing your processing fees! In some cases, it could also negatively impact your credit rating. So before applying, use an eligibility calculator, it will tell you the loan amount you can safely apply for.

3. Check your EMIs.

This doesn’t mean you have to physically calculate your personal loan EMIs by applying the interest rate to a reducing principal amount. No, it just means using an EMI calculator. Quickly input your loan amount, the interest rate and the tenure, then smack the enter key! Soon you’ll know all the EMIs of your repayment plan. Armed with this information, you can begin to conjure up financial strategies to cover the repayments.

4. Check your credit scores.

Many assume their credit score and apply for a personal loan without checking. However, this is a dire mistake. There might be calculation errors that are pulling down your score and reducing your loan worthiness. This is why you should always check your rating before applying. Look for errors and even try improving the score before applying.

5. Read the terms.

Finally, before you sign, make sure you scour through the underwriting. Try and understand all the caveats and details. If there’s anything that’s a cause for concern, make sure you clear it out with your lender before you put in the application.

Take these 5 steps and you should enjoy a smooth personal loan experience. Good luck and all the best with your personal loan.