Applying for a personal loan has become very easy today. However, there is a procedure that you must follow while applying for your first online personal loan to avoid assuming debt that you might find difficult to repay in the future. Read this article to know 6 tips that can help you find such a personal loan.
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Maintain a good credit score
To get a personal loan, you must have a good credit history. If you currently foresee having to avail a personal loan in the near future, you must start working on improving your credit score. In the range of 300 to 900, a credit score above 700 is considered good and a score above 750 is ideal. Banks and financial institutions tend to grant personal loans more quickly to customers who have good credit scores.
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Look for a high loan amount and a flexible tenure
The purpose of a personal loan is to help you meet a pressing financial requirement. You must therefore try to choose a personal loan that offers a large amount. Leading banks like IDFC FIRST Bank, for example, offers online personal loans up to ₹1 crore at attractive interest rates. Additionally, you must also prioritise loans that have flexible tenures. IDFC FIRST Bank offers repayment tenures of up to 60 months.
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Verify your eligibility criteria for the loan
If you are satisfied with the loan amount, the tenure, and the interest rate, you must check whether you are eligible for the personal loan. The criteria for a personal loan application are generally different for salaried employees and self-employed individuals. For a salaried employee to avail an IDFC FIRST Bank personal loan, he/she must be at least 23 years old. This age limit is 25 years for a self-employed individual. These criteria are subject to change depending on the loan-issuing bank.
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Use a personal loan EMI calculator
If you are eligible for the loan, you must now move towards assessing your ability to repay the loan. This procedure is simplified by a personal loan EMI calculator, for example the simple calculator from IDFC FIRST Bank. You can calculate your personal loan EMI payments and find a suitable repayment plan. You can also use such a calculator to choose a loan tenure that suits you.
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Check if a balance transfer facility is offered
A “personal loan balance transfer” facility allows customers to transfer the outstanding balance of their current loans from one lender to another. You must prefer a bank that offers a balance transfer facility on its personal loans. This option gives you the freedom to switch lenders depending on the interest charged by their personal loans and is therefore advantageous to you as the borrower.
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Read and know more about insurance and debt consolidation facilities
Certain banks offer customers the facility of consolidating their high-interest debts into one and repaying them through one affordable loan. This feature, called “debt consolidation”, is offered by IDFC FIRST Bank through its personal loans. You can also choose to insure your personal loan with IDFC FIRST Bank, with a lower premium than the one provided in the market.
Keep these 6 tips in mind while searching for a personal loan in India and be sure to find an affordable personal loan that helps you overcome any financial emergency!