Apr 2, 2022 ●15 min read
How to choose personal loan in India - Dos and Don'ts
With a hyperconnected society and rapidly evolving technologies, financial services are becoming more and more accessible. Advanced technology, instant personal loan are just a download away.
Personal loans are the most convenient option to meet your financial shortcoming. Luckily, an instant personal loan has some limitations for documents. You can utilize this amount for any of your expenses like wedding expenses, renovation, debt consolidation, or vacation. With a Personal loan, you don't have to specify where you will be using the loan amount. Categorically, Personal loans are a type of loan that can be utilized for any and every purpose, right from buying Ps5 to emergency medical funds for your grandma.
ZinCash Instant Personal Loan makes it easier with quick disbursement with minimal documents, after completion of the process the loan amount is directly transferred to your bank account within a matter of time. Personal Loans are like aid to your short term cash flow for your financial problems. Moreover, due to the covid situation, most people are still reluctant to visit banks because of fear of catching the virus in the crowd. Mostly People are choosing the digital platform for personal loans as personal loan apps are more convenient, safe, and quick to use. Money lending is getting easier every single day due to technological advancement. Though Personal loans are Collateral Free and easy to get, you must understand the dos and don't s to stay safe from unfair practices.
What are the top advantages of Instant Personal loans?
● As compared to traditional loans, the turnaround time of the instant personal loan app is super fast. The average time to credit the amount to your bank account is around 72 hours after the loan application is approved.
●Unsecured personal loans don't need any form of collateral or you don't have to keep anything as security. Usually, for an unsecured personal loan, Lending companies don't dig for much. You just need a Pan card, Adhara Card, Credit Score for the application.
●In the personal loan app process, most lenders just ask for KYC documents, income proof, and credit score. Just to confirm if you are a legit person with a legit income and paying capacity through your credit score.
●Instant personal loans are beneficial, particularly when you need emergency funds for medical reasons, organizing a vacation with your family or colleagues. It will cover your expenses such as doctor fees, medicines or tickets, food, and travel expenses. Once your EMI starts you can pay your loan amount in installments accordingly, or else you can foreclose your loan if you have excess funds. Let's look at the things that you must do and things you must not do while taking a personal loan
Every lender has its Terms and Conditions for a personal loan. You must check the interest they are charging and the tenure. Concerning loans, comparing loan interest rates will keep you intact about the amount you have to payoff. If you want to compare the rate of interest your lender is charging you can check it online. If you want to calculate your EMI amount then you can search for the EMI calculator available online, It will tell you, your EMI based on the loan amount, tenure, and interest rate.
You can utilize the EMI calculator to know if you can pay back the amount. Sometimes people do take a huge amount of loan and then they are not capable to handle it and because of the big amount that they can pay off the EMI gets bounced. The bouncing of EMI has 2 major drawbacks
1.You will have to pay bouncing charges which are again more money to pay.
2.Your credit score gets affected. The more you do default, your credit score gets lower. And with a low credit score, lower chances of getting the loan. So, paying your loan EMI is crucial to keep your credit history clean and credit score high.
A personal loan is the easiest to get because the criteria by lenders are limited. The most common requirements personal loan lending companies need are KYC documents (know your customer) bank statement as income proof and credit score.
You might be hunting for the best interest rate out there but this is not how it works. If you want to check what interest rate lending companies are charging, you can google it or check on their website. The reason why you shouldn't inquire a lot about the loan is that it might affect your credit score. That is because every time you apply for a loan, the lender will check your creditworthiness due to which you will be considered a credit seeker. As a result, experts say you must not apply to different companies as it will affect your credit score. Whereas you can find it online about their interest rate charges.
Paying your EMI on time will keep your credit score well and fine. If you keep bouncing your EMI regularly then your credit score will affect greatly which will result in difficulty in getting a personal loan
Many lenders give loans with flashing offers that will attract the common public. This type of flashing offers looks very advantageous but they are usually not. There are wrong financial practices that are prevalent these days. You have to be aware. Many companies are providing personal loans, you must check if the company is registered. Taking a urgent personal loan from a reputable company will keep you safe from financial fraud.
A personal loan is the best financial support in time of need. It can be beneficial in any type of financial benefit right from medical emergencies to planning vacations. It is quick and easy to get an instant personal loan in India. But while applying for an instant personal loan in India you must keep dos and don't s in mind.