Everyone dreams of living life without any financial stress. However, reality can be different, as life has its ways of throwing curveballs. For instance, a financial emergency can arise at a time when you are expecting it the least.
The good news is that you can easily manage such situations by availing personal loans. Whether you want to pay for a medical emergency in the family, renovate your parental home or pay for your sibling’s education, personal loans can be an easy option to manage such expenses. Even better is the fact these easy loans are now available on your smartphones. You can download the instant loans app on your phone and complete the entire loan process with a few phone taps.
As easy as it is to avail a personal loan, it is equally important to understand all the aspects before you apply for it. After all, it can be a financial liability, as you have to ensure regular and timely payments to avoid problems.
You may want to ask yourself the following crucial questions before you apply for easy loans via a loan app.
- Is A Personal Loan The Right Option For Me?
Personal loans can resolve financial emergencies while helping you maintain your financial independence. However, an EMI is a financial obligation that calls for regular and timely payments. But, it can also help you maintain a good credit score. You may want to go ahead with a personal loan if you can comfortably manage the EMIs.
- Will I Get A Personal Loan?
It is natural to wonder if you can get a personal loan in times of need. To answer this, you may want to check your eligibility. Every lender, be it a bank or an NBFC, has a defined set of rules to determine your eligibility for a personal loan. It becomes more comfortable if you have a stable income and a good CIBIL score. You can check your credit rating online before you go ahead with the loan application process on a quick loan app.
Besides, it can help to have all your documents ready for faster loan approval. You will need to submit your ID proof, address proof, and bank account statements. As a salaried employee, you will need to provide your employment proof, salary slips and a copy of recent Form 16. If you run a business, you must submit proof of your company along with your income proof.
- How Can I Improve My Eligibility For A Personal Loan?
With all documents in place, the only reason a loan application can get rejected could be due to an unfavorable CIBIL score. You can resolve this situation by paying your credit card bills on time and clearing your previous loans. It can also help to repay your EMIs timely and regularly.
- How Many Loans Can I Get?
This again depends upon your eligibility. Your salary is a crucial consideration in approving the loan amount. Ideally, personal loan EMIs must not exceed 25-30% of your monthly salary, and lenders generally use this benchmark to determine your loan amount. You can fill your basic details on the instant loan app and check an approximate loan amount.
- What Will Be The Interest Rate For The Personal Loan?
The interest rate is an essential consideration before you avail any loan. And it is no different when it comes to personal loans. Since personal loans are unsecured, the interest rates could be higher than secured loans. However, you can avail of a lower interest rate if you have an excellent CIBIL score. Some lenders also offer interest rates that reduce with the balance. If you opt for such an option, your interest rate can decrease as the principal reduces over time.
Availing personal loans can help you immensely during emergencies. They are comfortable, convenient and work faster if you apply via a quick loan app. However, it can be a significant financial decision, given the monthly EMIs to be repaid, and an adjustment in one’s lifestyle. These questions can give you better clarity and help you ascertain if a personal loan is a right choice for your needs.
The Bajaj Finserv is a Personal loan app that can come handy during your times of need. It is easy, quick, and brings smart financing to your fingertips. It also comes with the option of applying for a pre-approved offer on your personal loan.