A personal loan helps the customers to meet their immediate financial needs such as holiday trips or medical emergencies. Also, with no requirement of a collateral or security, the documentation involved to get the personal loan is far less as compared to other loans such as a home loan or car loan. However, a single mistake while applying for the personal loan can result in higher interest rates or lead to a debt trap. Therefore, you must be aware of a few things before applying for the loan.
To get the best personal loan offers and deals, keep these following points in mind:
1. Compare interest rates: Before applying for a personal loan, compare interest rates across various lenders. Interest rates can differ widely from lender to lender, so explore your options. Also, compare eligibility, processing fee and various other factors offered by different lenders. Choose the lender which suits all your requirements and offers a lower rate of interest.
2. Check your credit score: Check your credit score before applying for a personal loan. A credit score of 650 and above will give you a good chance of getting a personal loan with a lower interest rate and better offers. The lenders also check your repayment history for all current and past loans and credit cards. Thus, always ensure to repay your dues on time to have a good credit score.
3. Ask for prepayments on your loan: If you are planning to take a personal loan, make sure to ask your lender about loan prepayments. A prepayment on loan will help you to save tremendously in case of high-interest rates. However, some banks have penalty rates ranging from 3-5% when a customer decides to pre-pay the loan amount. So, make sure to ask about it before applying for a personal loan.
4. Negotiate with your bank or lender: It is highly recommended that you speak to your banker or official representative regarding the current rate being offered and ask them to lower the interest rate or waive off the processing fee.
5. Keep all documents ready: You must have all the necessary documents in hand before applying for a personal loan. It will help to speed up the processing of your loan application. The documents required are: Identity proof (Aadhaar card, PAN Card, Voter ID, Driving License), residence proof (Passport, Driving License, Election ID card), signed application form and income proofs (last 3 months salary slips, Form 16 or Income Tax Returns).
Conclusion: So, if you keep in mind the above-mentioned factors and present yourself as a credible borrower with a good credit score and proper documentation, it will be difficult for the lender to deny a personal loan for you. Also, you will get personal loans at a lower interest rate and better offers.
Apply for a Personal Loan here: http://www.myloancare.in/personal-loan/
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