As the popularity of personal loans increases, it is necessary that you consider some important points linked to them carefully before applying for them.
The popularity of personal loans has risen massively over the past few years, particularly among people of small and medium income groups. While there are a host of reasons that boost the popularity of personal loans, one among them is the interest rates attracted by them when compared to credit cards.
In this blog we shed light on some prime factors that you must take into consideration just in case you are thinking of taking a personal loan.
Selecting Loan Repayment Tenure: Choosing loan repayment tenure is an easy task. But, while selecting such tenure you must keep in mind that it matches well with your repayment abilities. In case you are bound by a number of financial promises it is best to select a long tenure loan, as they attract lower EMIs. However, such loans are costlier as longer tenures mean more interest payments in the long run. Conversely, if you are free from any kinds of financial promises it is best to opt for a short-term personal loan, as they attract less interest amounts. So, even if your EMI is high, the sum you pay back as interest remains small.
Check-Out Your Credit Score History: In case you are looking ahead for applying for a personal loan it is always recommended to check-out your credit score history, before filing your loan application. The prime reason of undertaking this task is that most banks and financial lenders have a minimum “Credit Score” eligibility criterion that you must meet when applying for a loan. Your chances of getting your loan sanctioned become greener if your Credit score is high. Therefore, if you have any unpaid credit card dues it is advised that you repay them at the earliest as this will improve your Credit Score.
Zeroing on the Ideal Money Lender: This is one of the most significant and challenging tasks to undertake when applying for a personal loan. Today, the lender market is not just restricted to banks for obtaining a personal loan. A large number of Non-Banking Financing Companies, Fintech companies, amongst others are also making their presence being felt in the Indian Financial Market. Through smart digitization these companies have totally revolutionized the way and the time it takes to disburse a personal loan.
Do Your Own Homework: While conventional as well as new-age lenders are required to reveal all impending fees and charges to the client, but, as a borrower you must also do all your homework, before you approach someone for loan. There are a host of fees and charges, like the loan processing fee, loan tenure fee, charges linked to loan cancellation or its foreclosure. All these fees and charges must be identified and talked about in the initial stages of your loan processing, otherwise, at a later stage they can become a big headache.
APLUS CAPITAL is a new-age personal loan provider that believes in making your hunt for a money lender absolutely hassle-free and quick. We have a wide range of personal loan options on board, which you can choose from at any time and from any place.