Ask Yourself These Questions Before You Apply for a Personal Loan - Make Money Online

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Ask Yourself These Questions Before You Apply for a Personal Loan

Do you have plans to go on the much awaited international vacation with your family? Do you need money to give your home a fresh coat of paint? Are you worried about the margin you have to bring for your child’s education? You should not worry at all. You can apply for Personal Loans. Banks in India have various Personal Loan products. Check out the best Personal Loan offers before you pick the right one.

What is a Personal Loan?

A Personal Loan is an unsecured loan you get on the strength of your income, repaying capacity, and credit history. There is no need either to inform the bank of the end use of funds or to provide any collateral. These features make the Personal Loans the favourite loan product for all.

Personal Loans are easy to avail. However, remember that these loans are the most expensive of all the loan products. The rate of interest is the highest in the industry. Therefore, you should ask yourself these five crucial questions before you Apply for Personal Loans.

·  Do I need the loan?

Banks have attractive Personal Loan offers. They do aggressive marketing as well. It does not mean that you accept the loan offer. You should introspect and ask whether you require this loan. Remember, you have to repay the loan on time to maintain your credit history. If you are confident that you would be able to honour the repayments, you should go ahead.

The loan does not require you to provide any collateral. You need not inform the bank about the end use of the funds. If you have a genuine requirement and do not have any other source available to raise the finance, you should go for it. If you want to use the loan to buy a car, opting for a car loan is a better option. The rate of interest on the car loan is less than that on the Personal Loan.

· Am I eligible to take the Personal Loan?

Visit the website of loan service providers like MyMoneyMantra to check out your eligibility. You need to answer a few questions about your income and other loans. Be honest in your replies. You will get your eligibility within no time. You will also get a list of banks that offer the best Personal Loans.

Be aware of the minimum requirements to qualify for the Personal Loan. The basic requirements are:
  1. Your age should be minimum 21 years
  2. You should have regular employment and income
  3. You should satisfy the KYC requirements of the bank
  4. A good credit history is essential

· What is my credit history?

You can check out your credit score before you apply for the Personal Loan at MyMoneyMantra. It is essential to do so because you will know your eligibility. The credit score is an important aspect that can decide your Personal Loan approval. Usually, banks consider credit scores over 700 or 750 as good ratings (depending on their requirement).

In case your score is lower than 700, try to improve your credit score before applying for the Personal Loan. Banks do the hard check on your credit report once you apply for the loan. It can reduce your credit score by a maximum of 20 points. In case the bank declines your application for want of a satisfactory credit score, the bank’s hard check will further impact your credit score. But, if your credit score is above 700 or 750, you can go ahead and apply for the Personal Loan.

· What are the terms and conditions of the loan?

It is essential to understand the terms and conditions of the loan. Be aware of the costs that you could incur like processing fees, prepayment charges, and so on. It is essential to know your prospective EMI. You should be able to afford the EMI (Equated Monthly Instalment). Any default in the repayment of the EMIs can affect your credit score making it difficult for you to avail loans or Credit Cards in the future.

· What are the repayment terms?

You should use the EMI Calculator Available at MyMoneyMantra to know your prospective EMI. Banks usually approve Personal Loans for tenures between 12 and 60 months. If you could afford to repay the loan in the stipulate time period, you should opt for the same. The earlier you repay the loan, the better it is for you. Maintain some cushion to take care of unexpected events. Understand the prepayment and foreclosure clauses before you apply for the Personal Loan.

The answers to these five questions should influence your decision to go for the Personal Loan.   

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989. 

Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers. 
Ask Yourself These Questions Before You Apply for a Personal Loan Ask Yourself These Questions Before You Apply for a Personal Loan Reviewed by Lokesh kumar on 11:10 PM Rating: 5