Applying for a personal loan through an instant personal loan app has been one of the most availed financial approaches during pandemic and lockdown. This is because most of us have received deducted or delayed salary. A few of us have even lost jobs, and a lot of small and medium businesses were shut down last year. Also, when you are applying for a personal loan through instant personal loan app, you can do it online sitting at home from any corner of the world. Personal loans are unsecured loans which you can take out from banks or a non-banking financial company and can use for any purpose without stating the reason to the lender. Personal loans can be used for multiple purposes such as medical emergencies, refurbishing a house, education, vacation, wedding, etc. You don’t have to pledge any collateral since personal loans are unsecured loans. Therefore, in any worst scenario, if you end up defaulting on the loan, the lender won’t auction any of your owned assets. Income, credit score, age, employment history, etc. are some of the few criteria to be eligible for applying for a personal loan.

It is imperative for you to cautiously evaluate your needs before you apply for a personal loan. Don’t forget to ensure the costs and requirements carefully. Your costs should include EMI, interest payments, processing fees, etc. It should not be taken out lightly as you have to agree to monthly repayment along with the interest rates. Keep in mind that you have to continue with this fixed portion of the budget for a couple of months till your tenure is over. Therefore, be productive and prudent on how you are using your personal loan. Read below a few points that you should keep in mind before applying for a personal loan.

Importance of a good credit score:

Credit score plays a crucial role when you are applying for a personal loan. A credit report includes your credit score, which authorizes your creditworthiness to the bank or lending institution. The above-mentioned bureaus pull out information from their members and provide about your credit history.  A score from 750 to 900 is considered to be a great credit score. If you have a good credit score, you have better chances to get your personal loan approved. Additionally, a high credit score will help you have multiple attractive loan offers with lower interest rates and higher loan amounts along with a longer repayment period. But you don’t need to worry if you have a lower or bad credit score; there are ways to fix it. Ensure that your credit card payments have been timely and you don’t have any default on any EMI payments.

Do not forget to check your eligibility criteria:

Eligibility criteria for personal vary from lender to lender and are different for variant instant personal loan apps. Before you are applying for a personal loan, don’t forget to check your eligibility criteria with the bank or lending institution or instant personal loan app. For instance, if you are applying with PaySense’s  instant personal loan app, your age should be between 21 years to 60 years old, you should be a resident of India having a minimum monthly income of Rs.12,000 (salaried employee) and Rs.15,000 (self-employed). Additionally, don’t forget to provide your Aadhaar and Pan Card as a proof of identity; Aadhaar Card, Rental agreement, Utility or Postpaid bills as proof of address; bank statements of consecutive 90 days as proof of income and a selfie.

Consider all additional costs:

Other than EMI and interest payments, there are other costs involved when you are applying for a personal loan. These additional costs involve processing fee, prepayment fee, and late payment fee. Read the terms and conditions properly and assess the feasibility accordingly before you are signing the final loan agreement. PaySense’s standard processing fee is 2.5% of the loan amount.

Run through the repayment plan thoroughly:

Before you are taking out a loan, consider all pre-existing financial obligations. This comprises monthly costs as well as EMIs. But if you have a flexible tenure, it will be easier for you to manage your finances in a hassle-free manner. PaySense provides a flexible repayment schedule varying from three months to sixty months. Instant personal loan app allows customers to avail attractive interest rates, the option of various lenders, and benefits of complete digital documentation along with faster loan disbursal procedure.