Answering FAQs On The Best Personal Loan

Best Personal Loan

Best Personal Loan

Are you in sudden need of funds? If yes, then a quick personal loan is the answer. A personal loan is a great way to resolve your financial crunches while making your credit journey smooth and hassle-free. The process of availing of a loan is easy, quick, and paperless. Several banks and non-banking financial institutions offer the best personal loan to individuals for different purposes such as medical emergencies, travel expenses, home renovation, wedding expenditures, higher education, and many more. Meeting the eligibility criteria and having a good credit score make it easier for you to avail a customized loan at a low-interest rate. Before you apply for a quick loan, it is important to do proper research, and that is when a list of questions comes about an instant personal loan. Hold on and check out these frequently asked questions before you apply for it online.

A personal loan is an unsecured loan, provided by banks and many non-banking financial institutions based on various criteria including, age, income, employment history, credit history, and many more. You can use this loan to fulfill your financial needs while repaying your existing loan dues and other credits. An unsecured personal loan doesn’t ask for any collateral for security, hence completely safe and secure to use. 

  • When Can I Opt For a Personal Loan?

Personal Loans can be used for a variety of reasons. You can apply for a loan for higher education, or to fulfill travel, wedding, and any other general expenses. This means you can take a loan whenever you need money.

  • What Is The Maximum Amount of Quick Loan I can Get?

This amount will vary from each lender. This also depends on the credit score, income, employment history, and repayment capacity of an individual. When you choose Buddy Loan for your financial crunches, you can avail up to Rs. 15 Lakhs to fulfill all your needs. 

  • How To Check If I am Eligible For a Personal Loan or Not?

Most lenders specify the personal loan eligibility criteria on their respective websites. You can check from there or discuss with the experts for a detailed loan guideline. To avail of a personal loan, you must be a citizen of India and you should have a regular source of income whether you are a salaried professional or self-employed. And also, you must have a good credit report. 

  • What Are The Documents Required To Avail a Personal Loan?
  1. Photo ID Proof (Voter/PAN/Aadhar/Passport)
  2. Photographs
  3. Residence Proof
  4. Last Six Months Bank Statement

The above-mentioned are general documents that you need to provide. When you are a salaried person, then you have to submit the last three months salary slips and income tax returns. And if you are self-employed then you need to provide a balance sheet along with the details of profit and loss. The document requirements may vary from each lender, so ask the lender for proper clarification. 

  • What Are Things To Look For Before Applying For a Loan?
  1. The tenure period for repayment is from 6 months to 5 years.
  2. The interest rate depends on various factors which include the lender’s terms and conditions and credit history. Buddy Loan offers personal loans starting at an 11.99% p.a. interest rate. 
  3. After availing of a low-interest rate loan, you may have to pay some other charges like processing fees. So have a look at this factor. Buddy Loan doesn’t have any hidden or pre-payment charges. 
  4. Though personal loans are unsecured and do not ask for any collateral or guarantor for security, few banks ask for collateral submission. Pay special attention to this before you apply for a loan.
  • Can I Apply For a Personal Loan Online?

In this fast-paced modern world, applying for a quick personal loan online can save both your time and effort. Even no long queues and waiting for approval. Apply for the comfort of your home and get an instant acceptance of it. 

  • Why Is It Important To Have a Good Credit Score?

Having a good credit score i.e. 750+ ensures quick approval and low-interest rates on personal loans. Your credit score evaluated your creditworthiness and repayment ability. Planning to apply for a loan? Make sure you maintain it throughout the year, otherwise, a low credit score can reject your loan application. 

  • Can I Prepay a Personal Loan?

Repaying a personal loan before the tenure period is called prepayment. Customers can prepay the amount before the tenure. Few banks may ask for prepayment charges, it can be a small amount or some percentage of the loan amount. Before you go ahead, check with your bank or financial institutions. 

  • How Much Time Lenders Take For Personal Loan Disbursal?

Well, this process too depends on multiple factors which include eligibility, documentation, and many more. However, choosing Buddy Loan ensures your loan will get disbursed within 48 hours of the approval because Buddy Loan offers paperless documentation with maximum ease and convenience. 

  • What If I Miss a Payment?

No matter what the reason is, if you default on your loan, then it will impact your credit score. And because of that, you may not be able to apply for a credit card or personal loan in the future. Besides, you may need to pay extra charges for this. 

  • My Loan Got Rejected – What To Do?

In this case, there can be two possibilities. Either you are going through several loans or have a poor credit score. Try to pay off your existing loans and improve your credit score by paying your loan dues and pending bills on time. 

Conclusion!!

Personal loans are a great way to overcome your financial issues. As mentioned above, it is crucial to do your research before applying for a loan. We hope this article will help you to understand more about a personal loan while making your financial journey experience smooth and hassle-free. So, don’t wait, apply online and use personal loans to fulfill all your needs. If you have any other questions, consult with the financial experts!