Offers
Rates
V-KYC
Debit Card Related
Credit Card Related
SA Welcome Kit 
Manage Mandate(s)
Get Mini Statement
categories
Bloggers
Blog collection
Press Release
Things to Consider Before Applying for a Personal Loan Online in 2022
Posted on Monday, May 16th, 2022 | By IndusInd Bank
A personal loan can help you cover a range of expenses, from college tuition fees to your wedding costs, collateral-free. This makes them one of the most sought after financing options, and maybe this is why you’re applying for a personal loan too.
But here’s the thing. Personal loan approvals can be tricky, so if you want to maximize the chances of loan approval, you must have all the necessary information on hand. After all, doing this will help you select a good loan offer and avoid unwanted errors while applying.
Looking for a comprehensive list of things to consider before applying for a personal loan? Well, we have got you covered. Read on.
Your Loan Requirement
Remember, when you take a personal loan, you agree to repay back the entire loan amount with interest by the end of the tenure. Naturally, the last thing you want is to be unable to repay your loan amount. So only choose an amount you can repay comfortably. To do this, evaluate your needs, your current income and check if you can repay the EMIs of the loan amount without dipping into your savings. Doing this helps you choose a loan amount you can repay comfortably and lowers your financial stress.
Credit Score
One of the first things lenders check before approving your loan is your credit score to determine your creditworthiness. So make sure you maintain a high score before applying for your loan. This makes the loan approval process easier and helps you get a loan at better terms like lower personal loan interest rateand flexible repayment terms as well.
If your credit score is lower than the loan requirements, start paying off your debts on time. This is the simplest way to increase your credit score considerably in just a few months.
Eligibility Criteria
The personal loan eligibility requirements typically vary between lenders, but they include a few basic parameters like age, occupation, income, etc. Remember lenders won’t approve your loan if you do not meet the specified eligibility criteria. So apply with a lender whose requirements you can easily meet instead.
Interest Rate
The interest rate tenure and the loan amount together determine your EMI repayments. Of these, the interest rate determines the total amount you will pay on top of the principal during loan repayments. Typically, the lower the personal loan interest rate, the lower amount you spend on paying loan interest, and the smaller the EMIs. So do your research and choose a lender offering a low personal loan interest rate.
Additional Charges
If you thought your loan spending was limited to regular EMI payments and interest, think again. Personal loans come with additional costs, like processing fees, late payment fees, prepayment charges, etc. What’s more, they eventually add up. So check the charges applicable before choosing your lender. Additionally, don’t forget to go through the terms and conditions section carefully. Doing this helps prevent any unwanted surprises in the future.
Loan Process
Getting a personal loan can be a fairly long and complicated process. Hence, many lenders provide a streamlined, online instant personal loans to make it easy for you to get a loan. The application process is 100% online and paperless making it easy to get a loan from the comfort of your home. Some lenders even go the extra mile and offer quick loan approvals. This reduces the idle time considerably and makes personal loan applications much smoother.
Conclusion
Once you have made the above considerations, you can confidently apply for an instant personal loan.
Looking for a trusted lending partner to help you secure your personal loan? Turn to IndusInd Bank. We provide quick and easy instant personal loans at affordable interest rates and flexible repayment tenures via a hassle-free online application process. And if that wasn’t enough, we guarantee quick loan approvals and speedy disbursals too!
