With uncertainties being an integral part of your life, you can never be sure that you have enough money to tide over tough times. As a result, it is necessary that you have multiple options at your disposal so that you are prepared for any emergency that may come up.
Your requirement may range from personal to business related. Rather than wiping out your entire savings or resorting to borrowing from family, it is better you explore other options. One of the best possibilities at your disposal is getting an instant Personal Loan or a Business Loan.
What is a Personal Loan?
A Personal Loan is an unsecured loan provided by banks and non-banking financial companies (NBFCs) in India. Personal Loans do not require any collateral and can be used for any purpose as you may deem suitable. Personal Loans offer you the flexibility to handle any financial emergency on short notice. You need not exhaust all your savings for any reason, as by taking out a Personal Loan, you get the option to pay back the loan in EMIs (Equated Monthly Instalments) without putting a strain on your finances.
With technology making a considerable impact in the finance sector, now you can avail instant Personal Loan from any lender of your choice who provides Personal Loan approval online. You just need to fill out the application form online and upload the required documents; if all your documents and financials are in order, your application would be approved within a few days.
How to get a great deal when you are securing a loan?
If your credit score is above the specified threshold and all your documents are in order, you have the flexibility to access multiple lenders for your Personal Loan application. But you must remember that different lenders have different terms, conditions, and eligibility criterion.
So, whenever you are about to shortlist a particular financial institution for your loan requirements, you must not hasten. Take your time to understand the loan agreement, terms and conditions, and carefully read the fine print to understand all the terminology involved.
Continue to read further to know how reading between the lines will help you secure a great deal when you are looking for a loan.
- Ask explanation for additional costs involved: You might have read some advertisement from different financial institutions saying that they offer Instant Personal Loans at the Lowest Rate. If you feel that the offer is to be too good to be true, then it most certainly is. Some lenders may try to conceal various additional costs that are applicable on loan and may tell you only the rate of interest applicable.
You should ask your lender to provide you with all the costs involved in a loan including file charges, processing charges, insurance charges, and so on. Do this with every lender you have been considering. This will actually help you understand the total cost of a loan, and then you can make an informed decision and in turn save a lot of money.
- Ask information on foreclosure or prepayment charges: Though it is true that you take a loan when your financial situation is precarious, and you need external support. But it does not mean that it is going to remain the same way for an extended period. Your financials may improve soon, and you could be in a position to pay off the loan in full or make a part payment towards it, in order to reduce your interest liability.
So, whenever you are looking for a loan, ask your lender to provide you complete information regarding the option of foreclosure, part-payment or prepayment. Also, ask for the charges they levy in such a situation. This information when help you avoid exorbitant foreclosure in future and also make sure that you need not continue paying the interest even if you have the money to repay the loan.
- Ask for payment options: Some of the lenders offer you the option of EMI holiday or a moratorium period for a specific duration when you get the loan sanctioned. This gives you a time gap before you need to start paying the EMIs. As such you would only need to pay the interest portion of the EMI for the specified duration.
The principal amount for the said period would be adjusted over the remaining tenure of the loan. This could be a handy option if you feel that your financial situation would improve in a few months or you need some breathing space. There is no harm in asking.
- Ask for additional benefits: If you are a good negotiator, you can get your lender to throw in some extra perks and benefits for you. They usually don’t reveal such options voluntarily but if you insist they can tell you about some offers or discounts which are available on your loan. It is your right to ask, and you must ask for any additional perks and benefits that are available. It could turn into significant savings during the tenor of the loan.
You need to be a smart borrower and not a desperate borrower, only then can you get the maximum benefits out of your loan.
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.
Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.