1. Multi-Purpose: You can take a personal loan for many reasons such as Medical, wedding, travel, etc.
2. No Collateral: When you apply for a personal loan, you need not submit any collateral.
3. Negotiable interest rates: You can negotiate with your lenders to reduce your interest rates if you have a high credit score. You will also get a loan for comparatively low-interest rates if your monthly income is high.
4. Flexible repayment tenure: You can repay your loan amount starting from 6 months to a maximum of 5 years.
5. Minimum documents required: You have to submit minimum documents like Aadhar Card, PAN Card, passport, etc., for KYC verification.
6. Instant Sanction of loan: Your loan will get approved instantly once the verification process is completed. It will be disbursed to your bank account within 24 to 48 hours.

Cons:

1. High-interest rates compared to other loans: You will be charged high-interest rates for loan approval if you have a poor credit score which can be higher than a credit card.
2. Other charges: Some lenders include charges such as “Processing Fees” and “GST,” which they may not disclose beforehand. Hence, you must pay this amount when you are applying for a loan.
3. Prepayment penalty: Some lenders charge you a prepayment penalty if you repay your loan before the tenure period to compensate for the interest rates.
4. Prone for scams: You have to check if the lender is legit before applying for a personal loan because scammers can use this opportunity to steal your data.

Eligibility Criteria

Documents Required

For Salaried Employee:

For Self-Employed:

Easy Ways to Get Your Personal Loan Approved in Miyapur

The lenders, consider the following factors before approving your loan. Here are easy ways you can get your personal loan approved in Miyapur:

1. Monthly Income: Lenders check your monthly income to know if you have a constant flow of income. You must have a minimum income of INR 20,000 per month to get your loan approved quickly.
2. Credit Score: A credit score indicates your creditworthiness and shows your repayment history. Lenders check your credit history before approving your loan. A score of above 750 is considered excellent and helps you get your loan approved quickly. You can also check your credit report using Buddy Score instantly.
3. Incorrect information: Fill in all the details accurately without leaving anything blank. You must also submit valid documents for KYC verification, such as Aadhar Card, PAN card, passport, etc., to avoid rejection of your loan application.
4. Have a co-applicant: If you have bad credit history but still want to avail of a personal loan, getting yourself a co-applicant can be helpful for you to get the loan. A co-applicant or co-borrower shares joint responsibility for the money borrowed from the lender. Hence, the lender may consider approving your loan when the co-applicant has a good credit score.
5. Relationship with your lender: An excellent and long-lasting relationship builds trust and loyalty. Since you have a good relationship with your lender, they will already have all the information about your financial situation and your ability to repay the loan. It will also help process your loan easily without having to submit any documents.
6. Debt-to-Income Ratio: The percentage of gross monthly income to that of monthly debt payments is called Debt-to-Income ratio. It shows the ability of an individual to manage monthly payments. Lenders expect your debt-to-income ratio to be less than or equal to 50% before approving your loan.

Also Read : Getting A Personal Loan In Manikonda Is Now Easy

Common Errors That Occur in a Credit Report

A credit report shows the summary of your credit history, and it includes all the financial transactions of your credit cards, personal loans and secured loans. But did you know that your credit report can have errors if you do not review it at least once a year?

Here are a few common errors that might occur in a credit report.

1. Incorrect personal information: Fill out the forms with your correct name and address as mentioned in your Aadhar Card to avoid this error.
2. Canceled or closed accounts: When you cancel or close an account, Check if it reflects in your credit report. Because sometimes, the credit report can still show the closed account as active or operational.
3. Transaction records you did not perform: If you find any transactions you don’t recognize, check and report them immediately.
4. Duplication of records: The credit report will have duplicate entries if the transaction is recorded twice. As a result, this error will negatively affect your credit score.
5. Inaccurate record: If you have paid your debts on time, check if it is reflected in your credit report. Because if there are any missed payments marked in your account, it will reduce your credit score.

Steps To Fix Your Errors:

1. Contact your credit bureau and report the error in your credit report.
2.  Specify the error and attach relevant documents for proof.
3. Next, contact your respective financial institution from which the error was generated. Send the same details that you had sent to the credit bureau.
4. You will receive an official acknowledgment from the regulatory authorities.
5. After your dispute gets submitted, the error claimed will be investigated and corrected.
6. Finally, you will receive a report of the findings and a corrected credit report.

In Conclusion

In a place like Miyapur, the demand for personal loans increases day by day as it is considered the most convenient source of funds, especially in an emergency. You can even apply for a personal loan using Buddy Loan app. It is one of the best third-party aggregators that offer instant loans online for different categories to curb the sudden financial requirements of the borrowers.

Apart from all this, reviewing your credit report once a year is necessary to avoid getting your loan from being rejected. You can also get your credit report instantly using buddy score to know your credit worthiness.

Having any queries? Do reach us at info@buddyloan.com