5 Things Remember Before Applying For An Instant Loan At Time Of Emergency | Mon

1. 5 THINGS REMEMBER BEFORE APPLYING FOR AN INSTANT LOAN AT TIME OF EMERGENCY Having sufficient knowledge of a personal loan, not only improves the chances of it getting approved but also protects the borrower from facing any financial risk in the future. Though personal loans are easy to access and widely available, there are many things related to them which the borrower or the client usually ignores at the time of applying for the loan. When an individual applies for a short-term loan, it is important to consider a few aspects of the loan before making the final decision. These aspects include the individual’s credit score, the interest rate at which the personal loan will be sanctioned, hidden fees & charges related to it, and so on. Taking care of these things ensures availing the best personal loan at low-interest rates and better services. Ignoring these aspects can lead to a borrower making big mistakes such as selecting the wrong lender and a wrong loan plan. Usually, people take an emergency personal loan when they have to meet a sudden unforeseen expenditure. However, there are certain things that are to be kept in mind before applying for an emergency loan. Some of the important points regarding this are explained below. Calculate the Total Loan Amount Generally, at the time of an emergency, people go for payday loans. Payday loans in India are unsecured loans and hence come with a high rate of interest as compared to other types of loans. The interest rate is one of the major factors which decides the repayment criteria. To have accurate information on the payment amount, it is important to calculate it before applying for the loan. This will provide the customer with an idea of the estimated amount that they will be required to repay. This will further help them decide whether to take a payday loan of that much amount or not. Calculating the amount beforehand will also help them plan their budget and finances accordingly. Compare the Personal Loan Interest Rates in The Market Different banks and loan providers offer different interest rates for personal loans and guarantee that they are giving these personal loans at the lowest rate possible. However, this is not true. It is the responsibility of the customer to study and analyze the rates offered by various money lenders. They can go through the official web portals of the different financial institutions and money lenders and can check for the interest rate. This empowers the customer to choose the best short-term loan that is offered at a minimal financing cost.

2. Borrow What You Need After knowing that an individual is eligible for taking a loan, the money lenders try to offer high-priced schemes and appealing financial services to lure the client into accepting one. However, in such a situation, it is advisable for the customers to not lose control after seeing that they can get more money without much hassle. Rather, they should only borrow the amount that they need at that time. A big amount might be tempting but repaying a huge amount can be a pain for a long time. So first, it is essential to analyze the financial needs to set the budget before applying for a personal loan. Check Your CIBIL Score When an instant loan is being considered, the moneylender first asks for the CIBIL score. A low CIBIL score can lead to the rejection of the loan application at the time of approval. Though in case if the loan application gets approved with a low CIBIL rating then the interest rate charged on the loan will be comparatively high. So, it is suggested to the borrowers to check their CIBIL before they apply for any type of fast loans online. Doing this will give them an idea of whether their loan application will be approved or not during an emergency. Also, if the CIBIL score is low, try to improve the score for easy sanction of the loan. Other costs There are many other costs involved in a personal loan, these costs are- processing fees, GST, etc. All these together contribute to the total loan amount. Therefore, it is necessary to remember these costs and add them to the final borrowing cost. Other than this, the customer should also know about the prepayment charges and penalties involved in the case of late payment. Thus, if someone is facing an emergency and is in a need of immediate cash online, then they should adhere to the points given above. Apart from that, a borrower should always seek better loan options and trustworthy money lenders. They should also keep in check their documents and other essentials for the quick sanction of the loan. Original Source: https://blog.moneyinminutes.in/5-things-remember-before-applying-for-an-instant-loan-at-time-of-emer gency/