5 factors to consider while availing personal loans in Calicut
A personal loan is an unsecured loan which comes handy when you are in need or want to fulfill your long pending aspirations.
A personal loan is powerful to bail you out of an urgent financial need.
It is because unlike other loans, personal loans get processed quickly, and the amount transfers to your bank account instantly.
Nowadays many lenders are approving a personal loan online instantly and disbursing the amount in your bank in less than 24 hours if you match their eligibility and furnish all documents online.
But, if you want to avail personal loans in Calicut, you must consider 5 important factors before you apply for the personal loan.
- Interest-rates: As personal loans are unsecured, they attract a high-interest-rate because you don’t need to provide any collateral or security against it. What should you do? You should maintain a strong CIBIL score to bargain with your creditor to offer you a low-interest-rate. If you have a low credit score, make sure to improve it first than availing a personal loan on a high-interest-rate.
- Penalty charges: In case you are unable to pay your EMIs on time, lenders charge a hefty penalty on the loan amount. Before a creditor sanctions your personal loan, ensure to check about all the hidden and unhidden penalty charges. Ensure the affordability factor of your personal loan right from the beginning of the tenor.
- Credit history: Before you apply for personal loan, do not forget to check your credit or CIBIL score to know the possibility of getting the loan to approve. If you have any pending outstanding credit card payments, clear it on priority. Why? It will reflect on your credit history while the online personal loan application is in process.
- Hunt for the best deal: It refers to applying for a personal loan with the lowest interest-rate. The lower is your personal loan interest rate, the lesser the total cost of borrowing money from a creditor. You should also check the loan tenor. If you like to pay the EMIs on personal loans for a longer duration, you can opt for a personal loan that provides you with the flexibility to pay in that manner. What’s more, when there are major festivals around, banks and non-banking finance companies (NBFCs) provide personal loans on a low-interest-rate to add a larger chunk of borrowers into their folds. Check with your prospective lenders about all such promotional offers. Be sure to unearth all hidden and unhidden charges of such festive offers before claiming the deal.
- Evaluate the purpose of your personal loan precisely: It refers to the intention for which you are applying for an online personal loan. Yes, usually borrowers opt for an online personal loan for genuine needs such as hospitalization, marriage, funding one’s child education, etc. However, if you wish to apply for the personal loan to invest in stocks or commodities to garner a high return on mere speculation, it is not recommended.
The Bottom Line
Finance advisors suggest that a personal loan is not hard to get. What matters is at what interest-rate a borrower is availing it and from a reputed lender.
Many times, when a borrower is short of some of the eligibility of the lenders, he/she has no other option, but to get the personal loan at an excessively high-interest-rate.
This prospect makes the personal loan all the way even more cumbersome and unaffordable for borrowers to repay and manage a healthy monthly cash flow.
So, what’s the advice?
Before you apply for personal loan, consider the discussed factors to gauge your current financial capacity and to determine whether you will be ready to repay.
All the best for your online application of personal loan in Calicut!