Thursday, 8 March 2018

Tips For Applying a Personal Loan

Are you facing any financial crunch? Maybe a wedding ceremony is arriving, maybe your home needs some improvement, maybe you have some plan to travel, maybe you need finance for higher education or maybe you have some daily expenses; all these situations can be easily handled with the help of a Personal Loan. You first have to understand whether you need the money or not and whether that expense can be bear with the help of a Personal Loan.

A personal Loan is a saviour to get you out of a financial crisis, but before you apply for it, you should be aware of all the basic rules of applying for a loan. 

Rule 1: Apply for a loan with affordable EMIs

You should not face any difficulty to repay the loan. Your EMI amount should not be more than 50% of your net income. You should choose your loan principal amount wisely, adjust your loan tenor and calculate your EMI beforehand so that you never become a defaulter.

Rule 2: Choose shorter tenor

A personal loan is an unsecured loan, so the rate of interest is also high. The longer you stretch the loan, your EMI goes down, but in the end, you end up paying more interest. So, it is better to choose a shorter loan tenor.

Also Read: Personal Loan On Your Mind- Read These 5 Tips to Get the Best out of Your Loan

Rule 3: Apply for loan balance transfer

Once you have applied for a personal loan at a certain rate of interest, you may find some other lender is offering lower interest rate. In that situation, you can shift your loan from the existing lender to a new lender with a lower interest rate. You may have to bear some processing fee, but your interest and EMI may be less.

Rule 4: Choose a lender with a lower rate of interest
Though you need the money on an urgent basis, that does not mean you apply for a personal loan in any bank or NBFC without reviewing the interest rate. You should try to find the right lender that offers you the lowest interest rate.

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