look news india
Personal Loan Tips: Traditionally, we Indians always stay away from debt, but in today's time, taking a personal loan is not considered a big debt. From credit cards to instant loan facilities have made us more flexible. Consumerism has also contributed to this. However, people are still seen making personal loans a burden. If correct information is available then a sensible approach can be adopted regarding the loan. If you are thinking of taking a personal loan, then before doing so, you must do research on some points, with this you will be able to become a better borrower and will be able to take the loan not as a burden but as a loan.
1. Will I get a loan or not?
Whether you will get a personal loan or not depends on many factors. There is no guarantee required on a personal loan, but banks first investigate you and only then release the loan. In this, your age, your income and your credit score matter the most. Generally, if your monthly salary is Rs 15,000 to Rs 25,000 then banks give you loan. Banks want to ensure whether you are in a position to repay the loan or not. And how much loan can be issued to you according to your salary? Loans are issued to people between 21 and 60 years of age. It is also seen how long you have been on the job. Generally 1 year experience is preferred
2. CIBIL Score
Before giving loan, banks check your CIBIL score. CIBIL Score is a 3-digit score ranging between 300 to 900, which shows how easily you take and repay loans, or your habit of loan transactions. CIBIL score includes your credit history. Your credit history and credit rating are seen in your credit report. Banks prefer a score above 750 for issuing personal loans. You can easily check your credit score online.
3. Personal Loan Interest Rate
Before applying for a personal loan, you should check which bank is offering the loan at which interest rate. The loan may have different interest rates depending on your loan amount. The interest rate is a big factor as it calculates how much interest you will have to pay on the original loan amount.
4. What is the relief on EMI?
Personal loan has two parts – principal amount and interest on this principal amount i.e. interest rate. You have to pay these in installments or EMI (equated monthly instalments). If you are taking a loan, then calculate how much EMI you will have to pay every month. Some banks or NBFCs give you the option of flexible EMI along with the standard EMI amount. Under Standard EMI, you pay a fixed installment every month. Whereas in Flexible EMI you start with a lower installment and gradually increase it.
5. What are the terms and conditions of loan repayment?
Before repaying the personal loan, you should also check the terms and conditions of repaying the loan amount before the completion of the tenure i.e. loan prepayment. Many banks or NBFCs charge a penalty on premature repayment of the loan. That is, if you repay the loan amount before the completion of the loan period, then you have to pay a penalty, this happens because the bank is getting interest every month by giving you the loan, if you repay the loan early then it has to pay this penalty. Does matter. Wealth. Stops coming. Before getting the loan issued, you can find out whether you will have to pay any penalty if you want to repay the loan prematurely.
6. Track record of the bank
It is also important to check the track record of banks. The first thing you should look at is the track record of the lender, how long it has been in the market, how strong it is and what the customer experience has been. Personal loans can meet your many needs and are now available for various planned and unplanned needs, so you should think carefully about the above mentioned points before applying for it.