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Tips useful in applying personal loan!

Personal loans are often drawn to get the cash required for some unexpected needs. It is availed to you only when the bank considers you creditworthy by checking your past history. Personal loans are the loans provided without keeping any of your valuables as security.

As we are not familiar to applying loans, we often get confused and make mistakes or miss a thing or two. So, here are few tips which will be useful while applying for a personal loan. 

  1. Be certain if you really require personal loan- Personal loans are drawn for various purposes like paying off credit card debt, house renovation or going for a vacation. Be certain if you really have to take a personal loan or some other type of loan can do the work for you. The reason behind this thought is, as the personal loans are not given with security and hence have higher interest rates than any other type of loans.
  2. Select the right financier- The personal loans are provided by conventional finance providers like banks and private finance companies also. The rate of interests, application and sanction processes are different for different sources. So, select the one suitable for your need. For example, one of my colleagues had urgent requirement of money and had no time to invest in the lengthy process of bank, he opted for a loan financing company in Delhi NCR, which was a private company and got the loan sanction within 1-2 days.
  3. Borrow the amount which you can comfortably- My friend had taken personal loan in Delhi. The amount was considerably big as per his requirement. He didn’t think about the repayment at that particular moment but faced lot of difficulties while repaying the loan. In order to avoid such a situation, please think that will I be able to repay what I am borrowing comfortably? Don’t take the loan larger than your repaying capacity.
  4. Be careful about Credit Cards- As I mentioned earlier, personal loans are not provided by keeping anything as security but they are provided by checking your past financial records. So, if you have a credit card, make sure you repay its debts within stipulated time to maintain good credit card records. This will make things easier when you will apply for the personal loan.
  5. Don’t lend small amounts from different money lenders- We often have this tendency to take smaller amount of loans from different money lenders. This surely fulfils our requirements of money at that particular time, but managing the different debts becomes a tougher task while repaying. So, try to take a consolidated amount from single money lender.
  6. Don’t sign any paper without reading- Always to save time or do things in hurry we make this mistake of not reading the documents before signing them. We don’t even read the rules and regulations before being agreed to them and often come across with some difficulty regarding the terms which were unknown to us. So, don’t sing any loan document before going through it thoroughly at least for the knowledge purpose.

Apart from following these tips while applying for the personal loan, have a quick survey of the market to have a good knowledge of interest rates and other terms and conditions of different money lenders. For example, if you want to apply for personal loan in East Delhi, private financiers is the best option as they provide loan with low interest rates and that also in very easy process.

So, take into account these smaller things and make your way to personal loan simpler.

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