As per CRIF?s report, the personal loan segment has witnessed tremendous growth in the past 3-4 years and recorded a y-o-y growth of 13.5% during March 2021. Irrespective of medical emergencies, fund grand affairs, child?s higher education, etc., and likes, instant personal loans are the most desirable financial option to meet varied expenses.
Leading NBFCs like Bajaj Finserv offer the best personal loans at affordable interest rates with a range of additional benefits.
Following are the steps to avail of personal loans and get instant approval.
Avail of the best personal loan in five simple steps
Being an unsecured credit, many financial institutions in India offer a personal loan. It is a convenient financing option to meet every personal and professional requirement. To choose the best personal loans for you, follow the pointers below that can benefit you in the long run.
Step 1: Compare and evaluate interest rates
As most financial institutions offer online applications for personal loans, it has become convenient to research and compare various personal loan offers. Individuals can visit their preferred lender?s website, explore their best loan offers, and choose one per their financial requirements.
Seeking the best low interest personal loan is one of the essential factors to consider while availing of this credit. This is because a slight reduction in interest rate can significantly impact the overall borrowing cost.
However, the interest rates vary from one lending institution to another. Therefore, individuals need to conduct comprehensive research and compare different offers extended by financial lenders.
Borrowers must keep in mind that financiers offer competitive interest rates by considering factors, such as income status, CIBIL score, meeting eligibility requirements, etc. Besides, one needs to know the ways to get the best personal loan rate to ensure a hassle-free repayment.
Step 2: Check eligibility criteria
When opting for the best personal loans in the market, borrowers must meet the eligibility parameters laid down by reputed financial institutions. This will allow borrowers to reduce the effort of obtaining funds and accelerate the loan approval process
Here are the common eligibility parameters to secure the best personal loan-
- Applicants should be within 21-67 years of age
- Must be a residing Indian citizen
- One should be a salaried employee in a reputed organization and salary should be Rs. 22,000 or more depending on the city of residence
- CIBIL score should be 750 or above.
Not adhering to the lender-specific eligibility parameter is one of the few reasons for personal loan rejections.
Step 3: Check the lender-specific documents required
Borrowers should always avoid loans with complicated terms and conditions. For instance, if a borrower requires emergency funds, he/she needs to go through complex documentation with loans featuring stringent servicing terms. Therefore, to avail of the best personal loan, one needs to stay updated about the necessary terms and conditions and required documents to secure the credit in a hassle-free manner.
Following are some of the documents that borrowers need to submit while applying for a personal loan from Bajaj Finserv-
- KYC documents
- Salary slips of the last two months
- Bank account statement for three months
- Employee ID card
Besides, borrowers can access free online EMI calculators to calculate monthly installments depending on the tenor, interest rate, and loan amount. Such financial tools will allow borrowers to choose a repayment schedule that suits their affordability. For this, borrowers must know how to calculate personal loan EMIs beforehand to manage their finances effectively in the long run.
Step 4: Choose flexible tenor
To ensure the best borrowing experience, individuals must carefully choose the repayment tenor while applying for the loan. This will allow borrowers to repay the EMIs conveniently, spreading them over a suitable repayment period. In addition, borrowers can consider opting for a longer tenor to ensure affordable EMIs and claim tax benefits. However, one must remember that choosing a longer tenor will increase the total borrowing cost.
Step 5: Know about additional fees and charges
Apart from considering affordable interest rates, individuals must enquire about the associated charges, such as processing charges, penalty interest, bounce charges, etc.
In addition, some lending institutions impose high fees, and ultimately borrowers end up paying more. So, before applying for a loan, one must check these charges thoroughly to avoid additional borrowing costs.
Apart from these, existing borrowers must know that prominent financial institutions like Bajaj Finserv extend pre-approved offers on several financing options, such as personal loans, business loans, credit cards, etc. Such offers significantly ease the process of loan application and save time. Therefore, check your pre-approved offer by submitting your name and contact information.
Thus, the above pointers will allow borrowers to conveniently avail of the best personal loan in the market to meet all their necessary financial requirements.
