3 Things to Check While Taking Out a Personal Loan

If you ever find yourselves running short of cash to meet an important expense, a personal loan is a good financial resource you can use to get some help. A personal loan is one of the fastest and most convenient ways to obtain emergency funds. You do not need to worry about providing any collateral, and some loan providers even offer you instant approval within just 24 hours (or less). You can also use the funds based on your financial requirements. This way, a personal loan isn’t restrictive in comparison to an auto loan/home loan. In the case of an auto loan/home loan, you can only spend the funds to purchase a vehicle or a house. A personal loan, however, can be used to clear credit card debt or finance home renovations, based on what you want. So, if you want an instant loan online, you need to make sure to pick out the personal loan provider that fulfills your requirements. Here are 3 basic factors to keep in mind:

1. Eligibility Criteria

When you’re looking to borrow a personal loan, this is the first thing you must check. The eligibility criteria is a preliminary set of requirements that any borrower has to fulfill before he can even apply for a loan. The eligibility criteria usually include factors like age (there’s a minimum and maximum age limit), employment (the types of individuals that can take a loan based on their employment), and minimum monthly income (the minimum limit will differ based on the city you live in). Talking about monthly income, the minimum limit for metro cities does tend to increase among lenders. Then, there’s the list of documents required as well, which usually includes your salary slips and KYC documents. So, the focus is to find a lender with eligibility criteria that’s simple and easy to understand.

2.Interest Rates

Going online and checking out a variety of personal loan providers based on their interest rate is a good idea. The interest rate is important while evaluating a personal loan offer because it’s what makes it that much more affordable (or expensive). It determines the amount of money that will go towards interest payments on your loan. In this regard, it’s desirable to have a good credit score, as that is what most lenders consider while sanctioning your loan. If you have a high score, you are likely to be considered a reliable borrower, and the interest rate on the loan offer may come down.

3.Repayment Flexibility

You must ensure that you have flexibility when it comes to paying your personal loan EMIs, both in terms of your EMI amount and modes of repayment. When you apply for an instant loan online, you’re looking to clear off a financial burden. Now, it shouldn’t be that the repayment structure your loan provider offers is so rigid, it becomes a reason for stress. Ideally, you should be able to set your tenure based on your repayment capacity. Most lenders have a minimum of 1 year and a maximum of 5 years. You should also have the option to accelerate your repayments. This means that you should be able to increase your EMI or make a bigger repayment when your income levels rise. You should also be given the facility to choose from different repayment modes like UPI, wallets, net banking, and cards.

Wrap Up

Taking the above factors into consideration will help you choose an affordable personal loan provider based on your financial requirements. The three points are basic factors that anyone must check while evaluating a personal loan provider. If an instant personal loan online is what you want, you can consider KreditBee. Just download the KreditBee app from the Google Play Store, complete your profile, and leave the rest to us! To learn more, you can write to us at help@kreditbee.in or reach us at +080 44 292 200.