Tips to know before you opt for a personal loan

 

A personal loan is the need of the generation. Having a personal loan proves to be beneficial in ways more than one. It not only covers you in the time of crisis but also provides you with a sense of security when the other options are close.

Moreover, it is very important to have preliminary information before you actually apply for a loan. Most of the time, personal loans are known to carry hidden terms and conditions that are inclined towards the financial institutions.

However, there are a few things that need to be looked after before you opt for a personal loan:

Personal loan eligibility

Having a check on your eligibility is the first and the foremost thing that needs to be looked after. Listed below are certain eligibility criteria that you need to follow:

  • Age limit: 21-65 years.
  • Net Monthly Income - For business owners, they need to present their IT returns over a period of two years that represent profits.  
  • For employees who are salaried, they need to show their salary credit to pass the eligibility criteria for a personal loan.



Personal loan rates

  • The interest rates for a personal loan are generally ranged between 8.95%-36.00% per annum. However, you should always check out for the best personal loan rates to get the lowest pay per month that comes in the form of EMIs.

Minimum Work Experience

  • Every salaried employee that applies for a personal loan needs to have at least 3 years of total work experience. However, different banks have different requirements and can also offer loans to employees with a year of experience.

 

  • In the case of a business owner who applies for a personal loan, they need to provide proof of their business presence for over a year. 

 

  • CIBIL Score for Personal Loan - Every individual that applies for a personal loan needs to have a CIBIL score of at least 650 & more credit history.

 

Things to keep in mind before applying for a personal loan:

  • A good credit history
  • Comparative research on the ongoing market interest rates and the best possible EMI structure.
  • Understand your needs to avail of the right amount of loan.
  • Keep funds to ensure that you can pay out properly and maintain your healthy CIBIL score as well.
  • Read all the terms and conditions carefully before signing up for a personal loan. 

 

One of the best parts about maintaining a nice output for a personal loan is that you can also avail health care insurance with it. Moreover, there are new companies that also help you with personal loans for bad credit.

Conclusion

Availing a personal loan can be easy if you follow the suggested tips and also keep a note on the amount that you avail a loan for. It is always advisable to keep a track of the payments that you make and also keep a record of interests so that you can match it with the total payments that you make.  

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