Instant Personal Loans – A Perfect Solution To Manage Your Financial Conditions!

instant personal loans - YeLo

Rising expenses on everyday commodities and luxury items are creating a lot of gaps between earning and savings. It is getting a little difficult for people to manage their finances. Instant personal loans are playing the role of antibiotics as more and more people are taking the same to fill such a gap between expenses and income.

A personal loan, unsecured in nature that doesn’t need any collateral or security, is offered by banks as well as NBFCs (non-banking financial service). Interest rates on personal loans are higher as compared to other loans such as home or car loans because of the involvement of unsecured risk factors.

Anyone can apply for personal loans but it is advised to carefully do the due diligence on the outcomes and considerable research should be done on various lenders before applying for online loans.

Good to Keep Following Points in Mind before Applying for Personal Loan:

  • It’s better to check your eligibility for a personal loan, i.e. you should be between the ages of 21 to 65, must have a stable job, and income proof.
  • Higher interest rates are associated with personal loans, thus make sure you well understand this aspect and prepared to manage EMIs with your existing income.
  • Another important checkpoint is your CIBIL or Credit Score that will be checked by every bank or lender. Make sure your credit history is in good shape and credit score is valid so that you won’t face application rejection.
  • Check the loan tenure and EMI amount which you can manage comfortably as EMIs will be higher in shorter tenure and lower in longer tenure.
  • Also, check loan pre-payment terms and conditions when applying for online loans. Although if you prepay the personal loan then still you have to pay a certain percentage as prepayment fee and generally prepayment can be done only after 12 months.

Now as the clarity on instant personal loan eligibility or criterion is clear, the next step after getting the personal loan is to maintain basic finance hygiene in place by considering the following points.

  • Never miss your EMIs, always pay them on time – Missing EMIs will lead to bad credit score and also incur heavy penalty charges that further pile up your debts.
  • Make a proper monthly budget – It is always advised to have a monthly budget in place so that you exactly know what are your income sources and what are your actual expenses including EMIs. Having a monthly budget and strict adherence to that will make your life much easier as you never miss your EMIs and pay any penalty charges. This will also allow you to save some of your money and have a savings kitty.
  • Do part payments of your loan, if possible – If by any chance your income grows through salary hike or bonus then you can use that extra amount to make the part-payment of your loan amount. But don’t close the loan before tenure as it will also negatively affect your credit score.
  • Always keep one single loan – If you have any other existing personal loan, then first close it and then apply for the new or fresh as it will badly impact your credit history and show desperation of money.

Keeping the above points in mind before applying for the online loans and after getting the approval will keep your financial state in good condition, else you will get trapped in bad credit debt.

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