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How to get a personal loan without any hassle?

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A personal loan can be a saviour to address emergency expenses, and you can use it for medical emergencies, house remodelling, wedding expenditures, higher education, and other requirements. The scope for a personal loan is broad; moreover, it has multiple yet convenient repayment options.

If you plan to get a personal loan, following the tips below can help.

7 tips for getting a personal loan without any hassle

Know the basics

The personal loan application process varies depending on your lender. You can speed up the process by being prepared and aware of the basics. 

When you submit an online application for a personal loan, the lender will probably seek information about your employment status, bank accounts, credit history, etc. Before starting the application process with a lender you’ve chosen, research them thoroughly. This may be done by visiting the lender’s website, speaking with a representative in-person, or contacting customer service via phone or email.

Understand the documentation

The lender will require documentation while processing your personal loan application to confirm your identity and financial situation. Keeping these papers handy will streamline the loan application process and reduce the hassle.

This includes your ID proof, bank statement, income proof, address proof, etc. Check out the lender’s website or mobile app for the details, and organise these documents to avoid delays.

Check your credit score

A strong credit score is a critical step in effortlessly getting a personal loan. This three-digit number represents your credibility as a borrower, and you get this score depending on your credit profile.

Check your credit score in advance as it is significant in determining your ability to secure this loan. Ideally, the lenders want a score over 750, and if it is not up to the mark, you can take the required measure to improve it.

Market research is important

Market research is essential to get a personal loan without too much trouble. As a part of it, you will study the loan offer from different lenders, the personal loan rates in India they charge, and other terms. Based on this, you must compare them and find one that meets your needs.

Furthermore, consider your savings and calculate how much you need as a loan. Think about repayments and how long it will take to pay them off.

When you plan these details, you can choose the right credit offer and avoid financial turmoil and doubt.

Prepare a budget that includes the EMI

Along with market research, preparing a budget is also a crucial part of your financial strategy. Since the loan will add further expenses, you need a proper plan to accommodate it. 

In this regard, you might need to temporarily cut back on some of your expenses to facilitate timely settlements. You can also use a separate savings account to prevent lapses or delays in loan repayments. Investing your money simultaneously and using the return to repay the loan is also wise.

Additionally, doing this will ensure that you apply for the right loan amount, which ensures you get the loan you need without any hassle.

Ask about any extra fees

When disbursing a personal loan, almost every financial firm levies a certain processing fee, documentation fees, and other additional charges. In addition, certain lenders demand prepayment penalties if a borrower wants to pay off his loan earlier than the agreed-upon time.

Having a clear understanding of these charges is necessary as it will ensure you get the funds you need, and not less. Moreover, if you are not aware and try skipping these fees, it will cause a delay in the approval process.

Choose the right repayment tenure

The repayment tenure is another factor that determines your EMIs and the loan interest rate. A longer-term may reduce the EMIs, but it will increase your overall burden and vice versa.

Hence, depending on your repayment capacity, you must choose an ideal loan tenure to avoid financial burdens. Moreover, you can use an online loan EMI calculator for this purpose.

Conclusion

Applying for a personal loan is relatively easy in this era of digitisation. You can easily do it online from the comfort of your home. However, to make this process less stressful, keep the aforementioned pointers in mind and work on them. Research thoroughly and ensure you meet your lender’s eligibility criteria. Avoid applying for multiple loans simultaneously, and be patient during the approval. 

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