10 Best Tips for Successful Personal Loans

tips for personal loans

 

tips for personal loans

Most Indians have limited monthly income, but their requirements continue to increase daily. We need plenty of money to meet multiple expenses such as grocery bills, education expenses, tours, medical bills, marriages, etc. An average working professional in India takes care of the financial needs of several family members and dependents. As a result, he has no money left for future use. Insufficient income, rapidly increasing inflation, multiple needs, lack of cash reserves hit ordinary individuals hard. Their situation becomes pathetic when they don’t have sufficient funds to meet essential financial obligations. Taking a personal loan can help you to fulfill financial commitments happily.

Multiple banks provide personal loans in India with different terms and conditions. Many individuals apply for online personal loans every year, but only a few succeed in getting the desired money. Credit-lending organizations in India conduct strict background checks and ask borrowers to complete different formalities one after another for personal loans. Out of a hundred, banks reject approx 77 applications due to multiple reasons. How to get a personal loan successfully without wandering here and there? Let’s look at the below-mentioned recommendations used by successful applicants.

Gain More Knowledge About Personal Loans

knowledge about personal loans

Most applicants who apply for personal loans in India don’t know about the loan product. They go to the bank, tell their desire to the bank manager, and start applying for a loan product that the bank wants to sell them. Because of this unprofessional approach, individuals take inappropriate loans that don’t suit their needs. To avoid all the hassles:

  1. Try to increase your knowledge about personal loan products as far as you can.
  2. Just search personal loan online on your favorite search engine, and you will get multiple pages displaying the result for the same.
  3. Go through all pages carefully and make sure you have enough knowledge about personal loans. You can also contact the banker and ask about a personalized loan product.

The more knowledge you have, the better decision you can make, keeping all aspects in mind.

Also Read : Latest Personal Loan Interest Rates of All Banks and NBFCs in India – 2021

Your Need For Additional Money

These days, the credit lending policies in India are so flexible that you can take a loan for almost all essential expenses. That is why many Indians take multiple loans without considering its repercussions. Before applying for a personal loan, you need to evaluate your actual requirement for additional money. There is no benefit of taking a considerable amount of money as a loan as you will be entirely responsible for its repayment. Different banks offer different amounts under the provision of personal loans. In general, you get funds from Rs fifty thousand to Rs. 30 lakhs. The bank will evaluate your overall monthly income, people depending on you, total expenses, existing debt before finalizing a loan amount. You must demand the money which is under your budget and repayment potential. It is possible that the bank may not be ready to offer you the requested money. After analyzing your profile and other details, it will give you much less money as a loan.

Check Out Personal Loan Eligibility Criteria.

Personal loans are available to both salaried and self-employed professionals. Anyone who fulfills the following eligibility criteria can apply for the loan and get the requested money.

Eligibility Criteria For Salaried People Eligibility Criteria for Self-employed people
  • Indian citizenship,
  • Age-21-60 years,
  • Stable employment with central or state government, a registered company, business organization, etc.,
  • Monthly income- Minimum Rs 25,000 to Rs 30,000,
  • Latest 3 month’s bank account details,
  • Latest 3 month’s salary slip,
  • Good credit score,
  • No involvement in crime and anti-social activities.
  • Indian citizenship,
  • Age-21-65 years,
  • A registered business entity with regular income,
  • the latest six months’ details of the current bank of your company,
  • No case against your company,
  • Good record of transactions, and
  • You must be running your business continuously for at least 2-5 years.

Keep Your Documents Ready

Bank executives will demand multiple documents after receiving your application for personal loans. The availability of required documents allows them to process your application quickly and announce their judgment in 8 to 10 days. Conversely, if any document is missing, it not only delays the processing of your application but also can become a reason behind its rejection.

Documents (For Self-employed people) Documents (for salaried people)
  • Personal identity documents,
  • Residence papers,
  • Date of birth certificates,
  • Employment contract papers,
  • Bank account passbook,
  • PAN card is mandatory, and
  • Credit score report, etc.
  • Personal identity papers,
  • Business registration documents,
  • GST number, is mandatory,
  • ITR details, audit report, etc.,
  • Details of the current bank account of your company.

Selecting A Bank for Personal Loans

Selecting A Bank for Personal Loans

In India, multiple banks offer personal loans to many customers every year. State Bank of India, Kotak Mahindra Bank, HDFC Bank, ICICI Bank, Bank of India, Punjab National Bank are some leading financial organizations when it comes to offering personal loans. Applicants should visit the website of all these banks, get more information about personal loans, and determine which offers are more suitable for them. Credit-lending policies, terms, and conditions, loan amount, repayment tenure, interest fees, processing fee, late fines change vary from one bank to another. A careful analysis of different loan offers allows you to choose a banking partner ready to offer you personal loans with flexible terms and conditions. If you cannot understand the financial terms of loan offers, take help from independent loan experts. They keep a close eye on the latest developments in the credit lending market and help you choose the best loan package under your budget.

The Quest For Loans With Low-Interest Fees

The interest fees applied on loans determines people’s behavior up to a great extent. Different banks offer personal loans with varying rates of interest. It would be pretty helpful to compare the interest rate of personal loans offered by various banks. It will allow you to track the difference between banks regarding interest rates. Choosing a bank ready to provide you with personal loans with the lowest possible interest fees is always beneficial. It will help you repay the loan EMIs comfortably every month without missing deadlines. The interest rate applied on loans depends upon various factors such as the loan amount you are looking for, credit score, debt burden, income, repayment potential. It would help if you discussed with the banker how you could get a loan with low-interest fees and act accordingly.

Good Credit Score

Having a good credit score has become essential for taking a personal loan. It manifests that the borrower has maintained a clean financial record in transactions with banks. It lets Bankers believe that the borrower will repay the borrowed money at the right time with all applicable charges. As a result, applicants with good credit scores receive an immediate response from banks soon after submitting their applications. On the other hand, having a poor credit score means that you have defaulted on loan repayment in the past. As a result, banks believe that you are financially unstable, and it is risky to issue a new loan. That is why applicants with bad credit scores get a straightforward rejection from the bank. However, Some Indian banks allow you to get personal loans even with a bad credit score if you meet the essential eligibility criteria and arrange a co-borrower with a good credit score. You should look for this kind of opportunity and assure the banker regarding loan repayment. Repaying the loan at the right time will help you improve your credit score and eliminate hassles associated with him having a bad credit rating.

Don’t Submit Multiple Applications In Different Banks.

The rejection rate of loan applications (for personal loans) is so high that many people submit their applications in many banks, hoping that at least one financial organization will be ready to give them the requested money. It is a wrong approach to get personal loans. Always keep in mind that Indian banks are interconnected when verifying the user data and extracting the financial record of applicants. After receiving your application for personal loans, the bank will contact the credit rating agency and your banking partner to verify the data you submit using a loan application. If they come to know that you have made too many applications for personal loans in different banks, your application’s chances for approval become pretty slim. Get more information about personal loans and start applying for them with one bank at a time. If the bank doesn’t find any suspicious behavior in your borrowing attempt, It is more likely to approve your application if everything is ok.

Start Loan Application With The Same Banking Partner.

Start Loan Application Process

Although you have complete freedom to take a personal loan from any Bank, you deem suitable. Keep in mind that banks get many applications for online personal loans because of the growing demand for money by a large section of people. If you apply for a loan with a bank in which you have not maintained a bank account, the Bank executives will take time to process your application. They need to consult your bank to verify the details mentioned in the application. Professional communication between two banks takes time, which delays application processing up to a great extent. If the banks receive negative information from your banking pattern, executives conduct additional checks to verify details and announce their decisions. If you apply for a personal loan with the same banking partner, Bank executives can easily extract your information from their database. As a result, they process the application much faster and determine whether you are suitable for the loan or not. If you meet the loan’s eligibility criteria and complete all formalities successfully as per the Bank’s instructions, approval for the application is highly likely.

Also Read : Factors That May Affect Your Personal Loan Interest Rate

Make No Mistake In The Loan Application.

All applicants need to apply for personal loans in the correct way and follow the banker’s instructions with great care if they want their application to be approved. You can submit your application for the loan by visiting the local branch of the chosen bank. The bank also allows you to apply for personal loans on its website. Regardless of the application method, you must submit all details correctly and re-check the supplied data before sending the application to the banker. Almost all banks receive an overwhelming number of applications for loans. Bank executives will first pay attention to applications that carry correct information. It allows them to complete all the necessary formalities to process the loan application.

The bank will reject all applications with incorrect information or missing documents. If you meet all formalities, fulfill terms and conditions, and get the minimum qualifying score during verification and background checks, the bank will approve your application for a loan. The approved loan amount is credited to the borrower’s bank account in 3 to 4 business days after deducting the processing fee. The applicant is free to use the received money to meet a wide range of essential needs. One of the main benefits of personal loans is that people don’t need to place collateral against the borrowed money. Anyone capable of meeting the essential eligibility criteria of personal loan can get the requested money from the chosen bank and deal with urgent financial needs without asking for monetary help from near and dear ones.

Getting A Loan Through Buddy Loan

Buddy Loan is one of the most prominent Non-Banking Finance Companies. If you don’t want to get involved in the complicated, irritating, and time-consuming formalities of personal loans, get started with Buddy loan without having any second thoughts in mind. Visit the service provider’s website, submit the required details correctly, and click the submit button after checking all details attentively. Executives working with Buddy Loan will match your requirement with suitable offers. Please look at those loan proposals, compare them with different angles, & pick one of them suitable for your needs. It is always easier to get started with Buddy Loan and receive the desired money as a loan. Simple application methods, minimal documentation, expert consultation, and protection from unlawful credit lending practices & scammers are some benefits of working with a recognized NBFC.

Conclusion

Although the market is flooded with lots of personal loans offers, getting the required money as a loan amount is not as easy as many people consider. Applicants need to do proper research on personal loans, get more information, and submit an application correctly. Then, quickly respond to the banker’s call when they invite you to discuss the loan package and related terms and conditions. You can get a personal loan by following the tips mentioned above. It helps fulfill all emergency financial obligations with profound ease. Seeking advice from independent loan experts and taking help from a prestigious NBFC enables you to get personal loans comfortably. Happy borrowing.