As compared to other loans in India by banks and financial institutions, personal loans are more easily accessible to borrowers. Well-known banks across India offer unsecured loans to their customers at competitive interest rates. In this article, you will find a checklist that you must consult before applying for any pre-approved loan in India. Read on.
- Review your credit score
Getting a personal loan online might be easier in comparison to getting a home loan sanctioned through the traditional method. However, not every personal loan application is sanctioned by the bank. You must maintain a good credit score to avail a personal loan. The first thing that you must check before applying for a personal loan is your credit score. A credit score that ranges between 650 and 900 is considered to be ideal.
- Check your eligibility
Next, you must consult a loan eligibility tracker online or visit the bank’s website to check whether you are eligible for a personal loan. Since banks have specific criteria for their personal loans, maintaining a record of these eligibility criteria can prove helpful for you.
- Have your documents ready
Once you have confirmed that you are eligible for a bank’s personal loan, you must start collecting the documents needed to apply. The documents, too, are subject to change depending on the bank that you choose. Generally, the documents needed to apply for a pre-approved loan fall under two categories – address proof-related documents and identity proof-related documents.
- Research and compare interest rates
As the next step, you must do your research online by visiting the personal loan webpages of the banks that interest you. Noting down important details of every bank’s personal loan can help you compare important features such as interest rate and repayment EMIs (Equated Monthly Instalments).
- Analyse the fees
You must also take out time to analyse the fees charged by various banks while offering personal loans. The fees that might be charged include processing fees, pre-payment fees, and late payment fees. You can choose a bank that charges minimum fees on personal loans.
- Plan for the repayment
As a borrower opting for a personal loan, it is important for you to be aware of all the details of the repayment procedure. To do this, you must use a personal loan EMI calculator. Such a calculator, like the one offered by IDFC FIRST Bank, can help you calculate the value of your future personal loan EMIs and help you plan for your repayment in advance.
- Opt for a reputed bank
You must opt for a bank that is well-known and offers efficient customer service. Any problem related to the personal loan’s repayment or disbursement must be addressed immediately by the bank, and you must be able to access your personal loan details at all times. IDFC FIRST Bank is one of the few modern banks that have gained big reputation and trust in a short span of time and their Personal Loan is known as one of the bests in the market!
Follow this checklist to zero in on the one bank that can help you meet your financial obligations better without weighing heavily on your pocket during the repayment cycle.