5 Important Things to Know Before Taking a Personal Loan

Spread the love

Getting an instant personal loan is the most popular financial product availed by people. Personal loans are unsecured in which the lender will not require you to provide any collateral or security. Therefore, both salaried and self-employed can get an easy personal loan. The loan is lent without providing any collateral or asset, and the lender evaluates your profile based on your credit score. A credit score is a 3-digit number that ranges between 300-900 that defines the borrower’s creditworthiness. Other than credit score, income, age, and employment history are other factors that lender considers. Additionally, you can use the borrowed funds for financing your wedding, vacation, medical emergency, arranging funds for your child’s education, buying the latest gadget, and much more.

Table of Contents

Important Things to Know Before Taking a Personal Loan

Consider your requirements before opting for a loan:
Before you apply for a loan, the first step is to ensure that you carefully evaluate all costs and needs of opting for the loan. In addition, it would be best if you always took care that the interest rates need to be repaid along with the principal amount. The overall cost of the loan includes EMI, interest payments, processing fees. Therefore, you must carefully plan your budget and utilize the borrowed funds as you need to pay the fixed amount as EMI.

Maintain a healthy credit score:
As personal loans are unsecured, the lender is at higher risk of default payment. Therefore, the lender’s first requirement will be your credit report to ensure the borrower’s creditworthiness. You can check your CIBIL for free with PayMe India. A credit report includes the record of the history of your past repayment of debts. A score above 700 is generally considered suitable by the lender. Thus, the higher your credit score, the better are your chances of your loan being approved. If you have a sound credit score, you can ask for a low-interest rate loan. Also, ensure that you pay your EMI timely to maintain a healthy CIBIL score.

Check the personal loan eligibility criteria:

The personal loan eligibility criteria depend from creditor to creditor, including age, occupation (salaried or self-employed), earnings. Therefore, always check with the financial institution regarding the requirements.

- Citizenship: The applicant must be an Indian citizen
- Age: Your age must be between 21-59 years
- Occupation: You must be either salaried or self-employed

Take all extra fees into consideration:

It is essential to consider other costs of taking a loan as it is not limited to EMI and interest payments. Several other expenses include processing fees, prepayment fees, and late payment fees. Before agreeing with the loan document, confirm that you carefully review the terms and conditions to assess the feasibility better.

Check the repayment plan entirely

It is advisable to evaluate all pre-existing financial responsibilities before opting out of another loan. If you plan for a flexible repayment schedule, this will assist you in managing your finances better in a trouble-free mode. The online lender provides a flexible repayment period of 3 to 12 months.

Get PayMe India’s personal loan

If you are looking for the best easy personal loan app for the self-employed, you can borrow funds instantly from the PayMe India app. You can get a credit limit of Rs. 500 to Rs. 5 lakhs at reasonable interest rates. You can avail of instant loans by providing minimal documents. The process to get an instant loan is totally digitalized, quite hassle-free, and collateral-free. Among all instant loan apps available, PayMe India is the best in terms of interest rates, approval time, and disbursal time. The moment the loan application is approved, the loan gets disbursed into the account instantly within a few hours. You can use the money flexibly, be it for fulfilling uneasy situations, planning a vacation, wedding, or rebuilding your house.

How to Apply for a PayMe India’s instant Loan?

No matter if you are either a salaried or self-employed employee you can get a loan up to Rs. 5 lakhs with PayMe India.

Download the app of PayMe India from the play store if android users and the app store if IOS users.
Finalize the KYC procedure by uploading your Aadhaar card, pan card, and live selfie on the app.
Upload documents for income verification: Salary slips, latest 3 months bank statement.
Just apply and wait for the approval. A customer service agent will take you via the loan application procedure.