Four Mistakes to Avoid When Applying for Instant Personal Loan

Whenever you require some urgent cash or a sizeable fund to fulfil your needs, one of the best solutions can be instant personal loans. Apply online for a personal loan from leading banks and non-banking finance companies (NBFCs). Anyone with the required personal loan eligibility can get up to Rs.25 lakh.

Although personal loan approval is easier as it is dependent on your creditworthiness, many applicants’ loan application gets rejected. It is because such borrowers make some silly mistakes.

Hence, here is a post to help you know about some personal loan mistakes that you must avoid for getting the approval without issues. Read on and avoid all mistakes!

  • Not Checking Your CIBIL Score

An instant personal loan is an unsecured loan which means it is offered as per your creditworthiness. Hence, to get the loan approval without problems, you need to have a robust CIBIL Score to get the loan approval at a lower rate of interest. Many borrowers apply for a personal loan without checking their Credit Score. As a result, their applications are rejected if it fails to meet the lender’s expectations. A CIBIL Score reading 700-750 out of 900 is what lenders expect to sanction a loan. Hence, ensure to check your Credit Score and resolve all errors, if any. You can also enhance your CIBIL Score by paying your current loan and credit card EMIs on time.

  • Do not apply for a loan more than you can repay

Many a time, loan borrowers apply for a loan amount more than what their income can support. As a result, when they apply for a higher loan amount, lenders reject their loan applications. Hence, the first thing is checking your personal loan requirement as per your income and then applying. This way, you won’t face issues in availing the instant personal loan approval.

  • Not checking the lenders’ eligibility criteria

Not checking the personal loan eligibility criteria of a lender and applying for a personal loan may also lead to the rejection. Some of the standard loan eligibility includes:

    • You need to be aged 23-58 years
    • You need to be a citizen of India
    • You need to be a salaried individual working for a private, public or an MNC company

Thus, before filling the loan application online, ensure to check a lender’s personal loan eligibility conditions to be loan ready. Also, you should use a personal loan eligibility calculator at a lender’s website to know an amount that you can get easily. The tool is available at a lender’s website free of cost.

  • Not reading the fine prints of the loan

You need to go through the loan terms and conditions at least once at the time of availing the loan to be sure of all charges for delayed payments and defaults. Some charges may be hidden which you may find later when you need to pay it. Hence, you should not indulge in such mistakes to manage the loan account easily.

An instant personal loan is easy to manage if you can follow the discussed tips to avoid all discussed errors.

Bajaj Finserv offers pre-approved deals on personal loans, business loans, home loans, EMI finance, credit cards, doctor loans and more. It can simplify the loan deals by making it less time-consuming.  

pardeepsharma

Pardeep is an experienced financial analyst, researcher & writer. He has done MBA in Finance. He has worked extensively in the finance sector along with many organizations. He spends most of their time on the Internet reading finance related stuff and love to share my expertise with readers.

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