Instant personal loans are an excellent way to meet the urgent and unexpected situations such as Debt consolidation, Payday loan alternative, cost of moving, medical emergency, Large scale purchases, paying membership fees of elite clubs, etc. Instant personal loans come with no end usage restriction, and you can use the loan amount as per your requirement. Nowadays, Instant personal loans are part of our lifestyle.
So to secure your maximum chances of securing an Instant personal Loan, you need to keep a balance of some dos and don’ts.
What are the Dos for an Instant Personal Loan?
- The interest rates are relatively higher for instant personal loans. Use an online personal loan calculator to compare the rates offered by different lenders. Choose the lender that has a minimum borrowing value.
- Instant personal loans are offered with easy-to-meet eligibility criteria. Most of the lenders define their eligibility criteria on age, income stability describing your capacity of loan repayment.
- Instant personal loans usually require only a few essential documents. Now with the use of technology for the loan processing system, there is no requirement of paperwork for instant personal loans. Required documents are uploaded on the portal while completing the application form. These documents show your identity proof, address, income, etc. Our suggestion is to choose a lender who asks for minimal documents and paperwork.
- Choose a lender after making a careful assessment of loan tenor, interest rate, and the loan amount according to your repayment capability. You can also use an online available personal loan EMI calculator. It helps you assess and the amount that best suits your repayment capability.
- An instant personal loan is taken for a short period. Hence, it is advisable to opt for a fixed rate so that you can budget your expenditure by setting your monthly payment.
- If you apply for the right loan amount, your chances of getting loan approval will increase. A personal loan eligibility calculator helps you check the amount you are eligible to avail based on your income status, existing debts, and other factors.
- Try to satisfy the high-level criteria set by the lenders. Keep points in mind such as Regular source of income, age, line of work, past loan repayment history.
- If you can negotiate well, then you can bargain with the lender for a lower interest rate. Hence, enhancing your negotiation skills can be an added advantage.
- Short loan tenor: Banks offer short term loans at a lower interest rate because there is a risk factor involved with long term loans. If you plan to apply for an instant personal loan, try to opt for a short term loan after considering your monthly instalments and the loan amount.
- Take a mixture of secured and unsecured loans. It helps improve your credit score as a mix of both secured and unsecured are getting repaid on time, making potential lenders assured
What are the Don’ts for an Instant Personal Loan?
- Making multiple inquiries to get the lowest rate can be counterproductive. Whenever you approach a lender, they have to check your credit score to know your creditworthiness. So, if you approach multiple lenders, you might be seen as credit hungry. Hence, we suggest you not make multiple queries. You can approach the my loan care team for such questions without affecting your credit score.
- The fine print of the loan has all the necessary information, terms & conditions and other details. So, it is imperative to read and understand the find properly. If there is any clause that is unclear to you, take help from the experts of the field. You must sign the agreement only if you understand the fine print.
● Maintain Your CIBIL Score
- A good CIBIL score reflects the creditworthiness of the prospective borrower.
- If your cibil score is low, then chances are your loan application might be rejected or you end up paying higher interest rates.
- Always pay your debts on time.
- A score between 750-900 is considered adequate according to different lenders.
- Make sure the debt is completely closed at the time of closure.
- If your monthly debts increase half of your income, then your chances of getting the loan application rejected will increase. If you have any existing loan and credit card bill, then you should clear them out.
- A loan by any name is still a loan, and it is always going to mean monthly EMI payments. Taking a loan with the intent to splurge, knowing you already have other debts to repay will land you in big trouble later.
- If there are discrepancies or errors in your credit report, correct it before applying to avoid unnecessary hassles during the application process.
- EMIs are inversely proportional to the loan interest rate. Higher the EMI, lower is the interest rate. If your monthly income allows you to pay high EMIs, opt for a high EMI loan so that you get a better deal on the interest rates.
- You must make sure that you remain in the same company or the same employment for at least six months. A stable employment record helps lenders assess your financial history to make decisions on sanction.
- You should ensure not more than 50% of income goes towards EMIs. Lenders want to assess whether you have income left from existing loans to get a new loan.
- Income becomes a significant factor in the case of unsecured loan. An instant personal loan is an unsecured loan. Your application for a loan might not be accepted if you have been changing jobs frequently.
Conclusion: Instant Personal Loans is an easy medium to meet your urgent requirements. After considering some factors such as CIBIl score, necessary documents, along with the others in mind, will maximize your chances of securing an Instant Personal Loan.
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