Every family has a set of expectations and desires to meet them. You can take help from banks for weddings, home renovation, travel and medical expenses, debt consolidation, higher education, etc. It becomes convenient to do so without compromising on them.
A Personal Loan allows you to borrow money for renovating, furnishing or buying a new home, car, or any valuable asset. You need to make the right call and get a good deal. Ask the following questions before availing them:
What is the eligible amount?
You qualify to borrow a fair amount of money on the Banking app with a great credit score. Aim to limit the amount borrowed, so your monthly payments stay manageable. You never know when the income will shift, or the living expenses will increase. The lesser you owe the bank, the lighter you are on your budget.
What are the fees?
Enquire about the closing costs that vary between banks. Know what fees you are deciding to pay before signing the documents. They allow rolling your closing costs into the borrowed amount. But remember that doing so also results in higher monthly payments.
What is the interest rate?
The higher your credit score when applying for a Personal Loan for a salaried employee, the greater your chances of getting a competitive interest rate. If you need to work on your credit score, expect to pay higher interest on the Loan. Each bank ultimately establishes its interest rate. No matter the credit score, it pays to shop around for other bank schemes.
What is the payment structure?
You must repay the amount in equated monthly instalments with interest over a pre-decided tenure. After six months, there are no fees for late payments or foreclosure.
How to apply?
Before applying, check the bank’s eligibility for a Personal Loan and other requirements. Ensure you meet them and provide the necessary proof to show your income, education, and residential address. Banks carefully check and assess your documents and enquire if you have any outstanding payments. Give them accurate information for quicker approval.
What documents to submit?
To process the Personal Loan for salaried on request, the bank requires documents like address proof, PAN card, Aadhaar card, last six months’ bank statements, last three months’ payslips, etc.
Is a co-borrower necessary?
Some banking institutions may allow a co-signer to help an applicant get approval. If something happens and you cannot make payments, the co-signer could be held responsible for the repayment of the amount.
How to repay?
Your repayment plan, usually monthly, will impact your day-to-day finances and depends on the Loan amount, interest rates, and tenure. Make sure you know your monthly due date and when those payments start by calculating them on the EMI calculator.
You can apply for the Loan after thorough research, comparison, and budget realisation. Have a clear goal and maintain finances wisely.
