4 things to check before applying for an instant personal loan in India

Life is unpredictable; thus, we never know when we might face financial problems. Further, due to the increasing costs of living, it has become highly difficult to maintain financial wellness. However, thanks to the availability of instant personal loans online, we can now easily obtain financial assistance through new-age banks and NBFCs (Non-Banking Financial Companies).

Further, the new-age banks and NBFCs (Non-Banking Financial Companies) provide instant personal loans at a way lower rate of interest as compared to traditional financiers. You also get access to flexible repayment tenure; thus, you can easily repay the loan amount over a set time. The new-age financial institutions also provide you with access to online tools such as online blogs and EMI calculators. Thus, you can use this EMI calculator to calculate your instalments based on your repayment tenure, principal amount, and interest rates.

One of the biggest benefits of opting for an instant personal loan online is that you can apply for the same from the comfort of your home or office. Further, you can use an instant personal loan amount for any of your personal or business-related needs; you can buy a new gadget, consolidate your debt, pay your medical bills, pay your credit card bills, renovate your house, and buy new machinery, or fund your travel plans.

However, before you apply for an instant personal loan in India, make sure these 4 things:

1. Interest rates

The new-age financial institutions charge you interest rates along with the personal loan amount; however, these interest rates are different for every bank and NBFC (Non-Banking Financial Company). Thus, you must always check and compare amongst financial institutions to find the bank or NBFC (Non-Banking Financial Company) providing you with the lowest interest rates.

2. Repayment tenure

As discussed earlier, one of the biggest benefits of opting for an instant personal loan online is the flexible repayment tenure provided along with the loan product. However, the longer your repayment tenure, the higher your interest rates. Thus, always choose the financial institution that provides you with your choice of repayment tenure at the lowest rates of interest.

3. Processing fees and other charges

Interest rates are not the only charges that you have to pay along with your instant personal loan online; after all, financial companies also charge you additional charges. These additional charges are in the form of processing fees, prepayment charges, and late payment fees.

4. Your eligibility criteria

Now that you have compared and finalized your financial institution, ensure that you check your eligibility criteria. After all, every bank and NBFC (Non-Banking Financial Company) has their own set of eligibility criteria that you must fulfil to be able to borrow from them. Further, every financial institution has its own unique set of eligibility criteria; thus, ensure that you check the eligibility criteria with your choice of bank or NBFC (Non-Banking Financial Company). The most common eligibility criteria are your credit score, credit history, income source, age, documentation, etc.

Hope you enjoy reading this article regarding the various factors to check before applying for an instant personal loan online in India.

I specialize in writing finance blog; Particularly, topics related to personal finance, loan, insurance policy and financial management.