Are you planning to take a personal loan? Avoid these few mistakes.

A personal loan is an ideal financial tool when it comes to mitigating your financial issues. There are many reasons to take personal loan India such as renovating your home, debt consolidation, medical attention, etc. however, you will have to consider a few factors before you avail it. You should avoid mistakes else it will make a dent in your wallet. So, here are five personal loan mistakes that you need to watch out for and avoid them.

Don’t Shop around

There are a lot of personal loan options in India; however, it’s not a mandate to pick the first one. Since you have options, you should compare deals amongst top banks & financial companies and shortlist the ones that will match your financial requirements and affordability. Go ahead and see if you have any pre-approved loan offers, as lenders will give you the best personal loan deals. You might want to consider things like interest rate, processing fees, disbursal time, repayment options and loan tenure.

Taking higher interest rates

It’s would be wise to see that if you’re taking a loan for debt consolidation, the interest rate should be low enough to save your money else it won’t make sense. You will find that a variable interest rate has its own negatives and positives such as it might rise in the near future as well. Keep the entire picture of average personal loan interest rate you would pay during the tenure and then decide if you should go for it or not. Else, you have a fixed rate on a safer note.

Personal Loan

Not calculating other charges

Personal loan India come with a lot of other charges such as processing fee, late payment charge, pre-closure charges, cheque delay charges, etc. The processing fee is a percentage on your loan amount, pre-closure is implacable if you close your debt early. Consider all these fees, and try to speak to the lender to waive them off. Consider all the fees that come with your personal loan, and then decide which one is the best offer for you.

Choose right loan tenure

We take a personal loan for a variety of reasons. Lenders offer flexible tenure of 1-5 years, and at times we’re happy to see a loan that gives lower monthly payment option. The deal might be great, but you would’ve to shell out more interest rates. If your goal is to get rid of the debt faster, short repayment tenure will make sense for you.

Fraudulent lenders

Due to the prevalence of online facilities, it’s easier to get loans at attractive deals. Lenders try to lure potential customers with low personal loan interest rates deal. However, with convenience comes the increased risk of falling prey to frauds as well. You should figure out lender authorization and only then approach them. Read reviews online and talk to a financial expert before you plan to avail loan form a particular lender.

Missing your monthly payment

It’s important you make your payments on time. Missing it will damage your credit score and would cost you late fees. If you’ve taken a secured personal loan, and you keep missing out payments, you might lose on the collateral pledged with the loan.

Here is how to get a personal loan quickly & easily.

For those who think it’s not easy to get a personal loan, think again! The internet has made things so easy that getting a personal loan is as easy as 1-2-3. Don’t believe us? Well, we will tell you how to submit your application in just a few taps & get sanctions in as little as two days!

Go online!

Jump traditional applications. Don’t waste your time visiting bank branches to compare quotes. Just go online and start comparing your options in seconds. You won’t need to take time out from work or move out of your home. All you need is your laptop, mobile phone or tablet.

Apply online.

Some borrowers compare online but still visit a branch to get a personal loan. Why do so when you can apply online as well? Just fill out the simple application, scan & upload your documents, pay the processing fees online and hit the submit button. Before you know it your application will be sent over for approval. If all is well, you can expect approvals in minutes!

Get a personal loan

Give apps a go!

Some of the new-age lenders have introduced apps through which you can get a personal loan in minutes. They will have completely app-based processes and extremely quick turnaround times. The documentation will also be extremely convenient and will usually consist of just 4 or 5 documents required; of which one would be a selfie!

Try aggregator sites.

This is probably your best option. You can use aggregator sites as well to get a personal loan. They will list the top 30 or 40 lenders in India along with their loan amounts, tenures & interest rates. This makes it easy to compare as you have all of the best options right in front of you, in one single page. You can also apply through these aggregator sites. In fact, most of them will provide you instant quotes and ensure that you get calls from lenders offering you’re the best possible deals.

They will also have calculators that you can use to ensure you are making sound decisions before singing along the dotted line and committing to the loan. These sites will also have unbiased reviews of the personal loans available today. These reviews will be written by real borrowers who have taken loans through these aggregator sites. This is extremely helpful as most reviews these days are fake and are posted by the bank or NBFC’s marketing agency to create a better online reputation.

So there you have it, some ways to get a personal loan quickly & conveniently, all thanks to the internet. If you are worried about online payments, just remember that these lenders are usually huge companies and they have full-proof firewalls & other precautions in place to keep your application safe. We hope this has been helpful, good luck and all the best. Always remember to read the loan documents carefully before agreeing. If you need more help, just get in touch with one of the lenders or aggregator sites today!

When Should You Apply For Personal Loans?

When you constantly feel that all your monthly expenses are disproportionate, or higher in comparison to your monthly income, then buddy, you are not alone. Sometimes you might feel that your actual salary dictate your quality of life, and you think twice before spending money in any situation. Well, in situations like a medical emergency or putting down your deposit for a better home or car, increase the stress lines on the forehead. So, how to handle these kinds of situations? Well, for every situation, you can apply for personal loans easily, without hurting your savings.  So, the main trick lies in-on how effectively you can manage and improve your life with the help of these unsecured personal loans.  Hereby, we are listing out some pointers when you should apply for unsecured loans.

When You Need To Clear Credit Card DuesPersonal loans can help you to clear or Pay off your credit card dues. If you have overused your credit card for multiple uses such as booking movie tickets, flights, hotel check-in, shopping, etc. and the dues had piled up, then you can consider applying for a personal loan. The actual interest rates charged by the credit card is way high than the interest charged by personal loans. Hence we think that taking a loan then make sense to call off all your dues in order to have a wave of mental peace.

Planning to Buy a Car? – After earning for years, somewhere in your life you might feel to purchase a car or a bike. Or, if you are already in your planning phase to buy a car in your name, then you can apply for personal loans without any fret, as you don’t have to pay the entire price of a car in one go. Well, in your planning phase, you can spend some quality time in selecting the right lender. Some people would suggest you take a car loan, but a lender can fund up to 80% of your car’s cost. Hence, in that case, too, the remaining 20% of your car cost can be easily funded or you can look for a personal loan.

Personal Loans

Lack of funds during special events: – If you have always dreamt of having an awesome Indian wedding, then you can make it happen with the help of personal loans. You can easily take a loan to meet the high expenses and then can repay it in easy installments. Whether you want to give an expensive gift or want a destination wedding, or even a reception you can apply for the personal loan according to your financial circumstances and repayment potential.

Well, it is advisable to do the market research before you apply for personal loans. And, it’s all up to you, whether you want to pick a fixed rate or the variable rate of interest, according to your convenience. In today’s world of digital finance, there are so many lenders which let you compare personal loan online, and hence, you can pick the one which seems more convenient from the comfort of your home.

However, it is very important to be aware and self-disciplined for a borrower, in order to have a smooth and happy borrowing process. You work hard and you deserve to live the way you want! And, hence the personal loan is one of the most lucrative and coolest avatars to live on your own terms.

Hope this information helps!

5 criteria you should use to compare personal loan providers.

Choosing the right personal loan and personal loan providers is no walk in the park. It requires tons of analysis & evaluation. You’ll need to carry out thorough market research to find the best loan and lender for your needs. It might seem daunting but this article will make things easier by highlighting 5 of the most important criteria that you should weigh your options against. They will help you make the right selection of finance & financer.

1. Loan amount on offer.

You should look for lenders that are willing to provide the loan amount you need. This is probably the first criteria that a good lender should fulfill. Different lenders will judge your loan worthiness differently and it’s possible that some lenders might not provide the loan amount you need.

2. Repayment comforts.

The lender should offer a choice of repayments plans. Some lenders offer up to 6 or 7 repayment options such as a step-up, bullet, EMI holiday, etc. Each of these repayment plans is suited for different kind of financial profiles. The more choices you have the easier it is for you to find a repayment plan that best suits your financial capacity.

Personal Loan

3. Charges.

All personal loan providers will have their own set of charges. How many charges there are and how much each charge will be different from the next lender’s charges. This is why it is important to compare charges before finalizing on a lender. While compare charges remember to pay special attention to the processing fee as this is one of the bigger charges involved. Most lenders charge between 1 & 2 percent of the loan amount – making this an important personal loan percentage to compare when evaluating the various lenders. Also look at late payment, prepayment & cheque bounce charges as you might encounter these while repaying your loan.

4. Reviews.

Most people compare numbers and figures and rightly so; a personal loan is a financial decision and needs to be backed by sound mathematical planning. However, sentiments of others can help make the right decision as well. That’s why you should what other people feel and say about the personal loans & personal loan providers out there. Positive reviews and good ratings are a sign of a good financial offering. It’s important you find unbiased reviews such as those on aggregator sites. These reviews are from real borrowers and not marketing gimmicks.

5. Interest rates.

This is one of the most important personal loan percentages. That’s why many lenders compare this rate before doing anything else. But this is a wrong approach. One should first find a few good loans and lenders that provide good loan amounts, comfortable repayment solutions, have good reviews have fewer charges and then compare their interest rates to see which the best is.

These were 5 of the more important criteria you should base your selection process on. They will ensure you get a loan and loan provider.

Good luck and all the best, happy borrowing!

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