5 Tips to Be a Smart Borrower When You Choose Personal Loan

A personal loan is the best resort when you require contingency funds. It is a flexible financial respite for times of financial uncertainties. Many prefer this loan as it is collateral-free and requires only the essential documentation. Applying for the right personal loan offer for you between the many lucrative loan offers and competitive details offered by lenders can be difficult.

Here are five tips for you to become an informed borrower while availing of a personal loan. Let’s check them.

5 Tips to Be a Smart Borrower When You Choose Personal Loan

  • Improve Your Credit Score

Your credit score is essential in deciding if you will get the best personal loan deal or not. Before you apply for a personal loan, check for your credit scores beforehand. If it is above 750, you can rest assured that you will get the best deals on any loans you apply for. If it is lower than 700, the lenders consider you a high-risk borrower and do not offer lucrative interest rates. Check out the factors that improve credit scores and improve your scores before applying for the loan.

  • Research about the Additional Fee

A personal loan has an additional non-refundable fee that most lenders charge. These fees include processing fees, cheque bounce fees, late payment fees, part prepayment fees, security fees and more. Understanding the additional charges levied by all lenders will help you choose a lender who charges lower additional fees.

  • Understand the EMI Calculation

This is one of the critical factors to find out your personal loan eligibility. Your monthly EMI payout is determined by calculating your principal, interest rate and the tenure you choose. Every month you will be paying a specific interest rate that will be clubbed to the portion of your principal loan amount. Calculating your EMI will help you zero in on an affordable loan amount. It will also help you avoid many hassles in the long run. Opting for loans with flexible repayment will help you choose a good tenure and easy EMIs that fit your budget.

  • Compare Different Personal Loan Interest Rates.

Though the interest rate is not the only driving factor while choosing a personal loan, it is an essential deciding factor. It plays a significant role in your monthly EMI payouts. Even a slight change in interest rate can bring down your monthly commitments drastically. Check for multiple personal loan offers instead of accepting the first loan offer you get. The personal loan market is highly competitive, and many lenders offer personal loans at the lowest interest rate. Compare different lenders and the rates they offer before choosing one.

  • Apply for the Loan Online

To speed up the application process, choose the lender who has a personal loan app. Applying for a personal loan online through an app is hassle-free and convenient. All you need to do is fill in the application, upload documentation, and wait for the lender’s call back. The loan will be approved within a day, and the loan amount will be credited to your account within 30 minutes. This is totally possible due to the speedy digital processing of the application and documents.

How to Apply for a Personal Loan Online Using a Personal Loan App

To avail of your loan funds quickly apply online by following the below steps:

  • Visit the Google Play Store or App Store on your smartphone
  • Download the ‘Fullerton Instaloan’app from your lender.
  • Register using your Google or Facebook account details or create a new account using your email id.
  • Fill in your basic information like name, address, date of birth, gender, marital status, contact number, address details, etc.
  • Then proceed to enter your employment and income details like the name of your current employer, your current CTC, etc.
  • Next comes the bank account information. This becomes your registered bank account with Fullerton India, where the lender will transfer your loan amount.
  • In the final step, scan and upload all the documents required for a personal loan.
  • You can now submit your application.  

The customer care representative will notify you regarding your personal loan eligibility immediately. If eligible, the application will be taken forward for further scrutiny and then approved.

That said, not all personal loan apps in the Google Play store are safe. There are a lot of scammers who have their app in the play store, which came to light recently. You will need to be careful to Install the trustworthy and secure app from a lender who is reliable and established and has good customer service. Finding lenders who quickly respond to queries after the loan amount is disbursed is best for personal loans.

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