Do you want to take personal loan? But you didn’t know how to take personal loan? Don’t worry we are here to help you. Sometimes in our life we fell in difficult situation where we need money. At that time we take loan from bank or lenders. But before taking loan you should keep some important things in your mind. Let’s look what are these.
The interest rate on a personal loan is high, so it should be taken only if there is no other option left. Personal loan helps us in times of financial crunch or to meet big expenses. It can be a valuable financial tool to pay off debt. Customers must do a market survey before taking a personal loan. Many banks charge low interest on personal loans, so customers should take advantage of it. Today we are going to tell you some important things related to personal loan, which can be very useful for you.
How to take personal loan in easiest way?
According to tax and investment expert Balwant Jain, you should approach the bank where you have an account, then it will be easier. Because there the bank has the history of your financial transactions, it takes less time for the bank to process. Second, your basic KYC must be completed. You have to provide your income documents like Form No. 16, copy of ITR etc., which shows your repayment capacity.
- Approach the bank where you have an account.
- Complete your KYC fast.
- Provide income documents.
- Bank manager will verify your documents and approve it.
- Finally you’ll get money.
Note- you will get instant loan if you are preapproved by the bank.
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What are the important things to kept in mind while taking Personal Loan?
These important things should be kept in mind it will be of great benefit.
1. Offers
Many banks and financial institutions offer offers for personal loans. In these offers, many benefits are given to the customer with a personal loan, including some discount in the interest rate. Before taking a personal loan, the customer must know about such offers available in the market. Also, one should compare the interest rates of various personal loans available in the market. The bank or financial institution that had the loan with the lowest interest rate should be chosen.
2. Credit Score
Credit score is very important in case of loan. A good credit score can easily get the customer a low interest rate personal loan. A credit score of 750 and above greatly increases the chances of a good personal loan deal. Customers can maintain a good credit score by keeping their credit utilization ratio in the range of 30 percent.
3. Reliability
Customer credibility matters a lot in a personal loan. The higher the credibility of the customer, the easier he can get the loan of his choice. Employees working in popular institutions and multinational companies find it easy to get loan deals of their choice. This is because people working in big and popular companies have more stability in the job, which means that they are more able to repay their loan on time.
4. Payment history
Having a good payment history of the customer proves beneficial while taking a loan. So always try to pay your credit card bills in full and pay off your debt every month. If there is any other loan already taken by the customer, then his EMI should be deposited regularly. This will make it much easier for the customer to take a new loan. At the same time, the chances of getting a loan with a low interest rate also increase.
How to take personal loan?
Is personal loan good or bad?
According to the SEBI Registered Investment Advisor Harsh Rungta there are three things –
- Are you building assets from loan?
- Are you looking to increase your loan income?
- Is this loan suitable?
The main motive of taking loan should be clear and reasonable then you can take loan.
It is good or bad it depends upon you that exactly how you utilize the personal loan and what is the reason behind taking personal loan. It is up to you and the situations around you. If you use it for good reason then it is good and if you use it for other like buying expensive car, expensive house then it is up to you.
For example- if you are buying assets from personal loan like house or property. It is reasonable. But if your income is 5 lakhs and you are buying 1 crore house then it is not suitable.
Conclusion
So, I think by reading this, you get know some extent that what are important things to kept in mind and how to take personal loan?
Note- Before taking any loan please consult with your financial advisor. We only provide information for educational purpose.
