Taking up a personal loan is one of the affordable solutions to manage your unplanned expenditures and exigencies. No matter whether it is a planned home renovation or medical exigency, a personal loan can assist you with all of these. As low as Rs 2 lakh loan or 3 lakh loan can be availed by you. These loans are available online and thus can be availed by anyone online from the comfort of home. However, despite this, many individuals hesitate to opt for a personal loan owing to reasons like a high rate of interest and complex terms and conditions. Note that these are complete misconceptions; a personal loan is not expensive if you meet the eligibility criteria and have an excellent credit score. Terms and conditions in such loans are very simple, which makes you free from stress for the whole loan tenure.
Well, the crucial factors that determine your eligibility for a personal loan are – your age, employer, type of employment, your monthly income, your fixed income to obligation ratio, your credit score, and your liabilities. However, an individual’s eligibility criteria can differ from lender to lender, and if you mitigate them, your personal loan application can be approved without hassle. Mitigating the eligibility criteria of the lender also assists you to get instant loan approvals at lower and affordable interest rates.
Thus, if you are stuck in any financial, monetary crunch and require money, then opting for a low-rate personal loan can be the best solution.
However, to avail of the personal loan at lower interest rates, you require to adopt certain things, they are:
Disclose all your source of income
May it be income coming from rented flats or freelancing jobs, disclosing all your income sources can assist you in availing personal loan at a lower interest rate. The idea is to lower the risk that is involved to lenders by displaying you have adequate income to repay your loan.
Apply with a lender with whom you hold a good banking relation
Personal loans are provided by various lenders, ranging from private-sector lenders to top nationalized lenders. And to avail of the best deal on a personal loan, you require to apply with those with whom you hold a good relationship. The reason is – you might avail some advantages that you will not have with new lenders. It is because your existing lenders, as they are aware of your financial behaviour and income, may be readily convinced that you will pay back the personal loan without default. Hence, there stand huge chances for you to avail approval for a personal loan at a lower rate of interest.
Including in a co-borrower
Including a co-borrower to your personal loan application not just adds to your personal loan eligibility but can even assist you in getting the best deals and lowering interest rates. Thus, if your lender permits, do add in a co-borrower to your loan application to make it a good experience for you. However, even if your loan is approved at a lower interest rate, it is crucial to manage it properly in a manner that does not become a burden for you in the future.
How can you manage your personal loan?
∙ Borrow according to your need
∙ Make a proper budget to plan out your repayment
∙ Timely repay the EMIs so that you do not require to pay penalties
∙ If permitted, you can pay more than your loan EMI
∙ Choose prepayment and part payment options whenever you have adequate funds
∙ Keep end to end track of the rest of the loan amount and payments
Personal loans can come across stress-free and straightforward procedures once you are aware of the procedure. However, fearing the interest rates is not a great idea, as you also can work on it and get it down to the lowest. Disciplined finance helps set a well thought out budget.
Clinical requirements or medical exigency
There are various medical expenses that are not at all secured under the insurance plan. Such expenditures can build up even before you figure out the requirement to address these expenses. It is where you can be dependent upon the personal loan to overcome financial uncertainty. In these cases, many individuals believe that it is a great idea to depend on a personal loan to mitigate expenses.
Debt consolidation is amongst the top reasons for the individual taking a personal loan. If you are one of those with various loans, then you may consider consolidating all the loans into one at a lower rate of interest.
Upgrading credit score
Having a spotless credit score is crucial as it paves the way for future credits. Repaying and availing of personal loans is a great way to upgrade your score. Many individuals go for it if you need a bigger loan in future and look to improve your credit score before this.
Higher education can be very costly. Hence, many individuals today opt for personal loans to pay for their kid’s education. This is fueled by the rising ambition amongst the individual to form a lucrative career. Availing the personal loan for a higher education permits individuals to achieve the best education quality and remove financial constraints that may stand in the way.
Usually, at times, there are few home repairs that cannot be neglected. However, with the assistance of a personal loan, you can easily prevent them from burning a hole in your pocket. A personal loan for home amelioration is best if you require to repaint your home, fix the leaking ceilings, or mitigate unavoidable expenses.
There are times in life that you need an additional money inflow, and with a personal loan, it can be simple to attain. Whatever might it be your reason to take up a personal loan, one thing is sure, and additional financial padding can permit you to reach your potential. It provides financial security and a certain emotional security level.
With the average cost for basic products rising, individuals are raising their comfort and convenience bar. Personal loans are the most preferred credit choice. It is an unsecured option and possibly can meet all your pressing money linked needs. What follows is the rundown of top positioned purposes for which individuals can and may opt for Rs 2 lakh loan, 3 lakh loan or above in India.