Personal loan is an unsecured loan so lenders offer you a personal loan of much lesser amount as compared to home loan or secured loan. First of all, you should check that up to what amount the bank or lender is offering you the personal loan.
If you suddenly need some money and there is no other option available in front of you, then you can think of taking a personal loan. Lenders usually charge higher interest on personal loans, but in today’s time many banks and NBFCs are offering personal loans with low interest rates and other attractive offers. If you are also planning to take a personal loan, then let us tell you that you should get information about many important things before applying for the loan.
1. Personal Loan Eligibility Check
This is the first step towards taking a loan. Actually, a personal loan is a type of unsecured loan, so lenders offer you a personal loan for a much lower amount as compared to a home loan or secured loan. In such a situation, you should first check that up to what amount the bank or lender is offering you the personal loan. For this you should first contact the bank in which you already have an account. After this, you should also check your eligibility with other lenders. You can do this work sitting at home through various portals or through the official website of the lender.
2. Check Credit History or CIBIL Score
It is most important to check the credit history or CIBIL score before applying for a loan. Credit history shows whether the person applying for the loan has paid his credit card bill or any other loan taken in the past or not. If your credit score is good then you can get loan easily and at attractive interest rate. A credit score over 700 is considered good. On the other hand, if your credit score is not good then you may face problem in getting the loan.
3. Offers Comparison
While taking a loan, the most important thing we should pay attention to is which lender is offering us the loan at the lowest interest rate. Along with this, we should also consider the aspect of processing fees. Often during the festive season, various banks offer rebate in processing fees on personal loans or other types of loans. Also, if you are getting any kind of other offer, then you can also consider that.
4. Credibility
Nowadays you must be seeing that there is a lot of fraud in the name of personal loan. In today’s era, there are some apps that offer loan within minutes. You should not ignore such offers. You should take a loan only from a bank regulated by RBI or a reputed lender.
5. Keep Documents Ready
If you are thinking of taking a personal loan, then you should keep your documents ready. In these, documents related to income, Form 16, ITR, Aadhar card and PAN card are required.
