Choosing an instant personal loan is an important decision. You are not only entering into a legal contract but also committing to work with the lender for the duration of the loan. So, it is crucial you pick the right option.
If you are looking to borrow money, it is important that you know the features that a good personal loan should have. To help you with your decision-making process, we have come up with 5 questions you must ask yourself to identify the best instant personal loan option for you. Let’s jump in!
Does the Personal Loan Meet Your Financial Needs?
If you are planning to get a personal loan, it is important to understand how it can help you. A personal loan is a form of borrowing money from a lending institution. This type of loan is meant for individuals who need funds for emergency purposes, such as paying for medical bills or paying off debt. You can get a loan from banks, NPFCs, mobile loan apps, and online lenders.
The first thing you should do when considering whether or not to take out a personal loan is to determine what your financial needs are. Instant personal loans can vary from Rs. 1000 to a few lakhs. The loan amount should be convenient for you. This means that the loan amount should be sufficient enough to cater to your needs, but not too much that it becomes burdensome
Do I Meet the Loan’s Eligibility Criteria?
Your credit score and income are the two factors that determine whether you can apply for a loan. Other eligibility criteria include age, citizenship, and documentation. You should only apply for personal loans that you are eligible for. If you do not meet the criteria of the lender, they can reject your loan application.
If you have bad credit or no credit history at all, then this can be one of the biggest obstacles in obtaining a personal loan because lenders typically require borrowers with good credit scores before offering them loans. This means that if you do not have any available credit on your own, then you should consider lenders that have more lenient eligibility criteria.
Is the Lender Trustworthy?
Before applying for an instant personal loan, verify that the lender is legitimate and trustworthy. You can check if the company is registered with the RBI to weed out any fraudulent lenders or loan apps. You can also read ratings and customer reviews online to get an understanding of the customer experience.
Can I Pay Back the Personal Loan Comfortably?
You need to make sure that the terms of repayment of your debt are agreeable with your financial situation and needs so that you can pay it back comfortably. The interest rate and loan tenure on the loan should be affordable for you. Be sure to take the time to do your own research and compare several options to see which combination suits you best.
The most ideal option has the lowest rate of interest and flexible loan tenures. But, if you are paying high-interest rates, then it might be better to opt for a shorter tenure so that you do not end up paying too much in interest over time.
Are the Terms and Conditions Favourable to Me?
You need to ensure that there are no hidden costs or surprises when repaying back your debt; this includes loan processing fees, late payment fees, cheque bounce charges, loan cancellation charges, and other charges which may affect your decision-making process as far as repaying back your debt is concerned. Compare and contrast different personal loan options to see what additional charges each lender levies.
Also, have a look at the different terms and conditions of the loan. For instance, some loan apps such as CASHe, offer a 7-day grace period after the repayment deadline during which you can pay the EMI without being charged a late fee. Looking for flexible and favorable terms like these can help you make your decision.
CASHe is an innovative loan app offering instant personal loans, instant credit lines, and BNPL services. Download the CASHe app today!