A personal loan gives quick access to funds without collateral, guarantor, or security.
Whether for education, home renovation, vacation, wedding, medical emergency, or debt consolidation, an unsecured personal loan helps cover the expenses with ease.
Fullerton India has simple eligibility conditions and minimal documentation requirements to make personal loans accessible to all.
It supports a 100% online loan procedure so that borrowers can get the needed money without leaving their homes. However, applicants need to consider a few things to get the best deal.
When applying for a Fullerton India instant personal loan online, here are a few do’s and don’ts.
Do’s for Applying for a Personal Loan Online
Compare Lenders
Today, the power of the internet allows people to do their research without any professional help. There is no need to visit the lender’s offices physically.
They may visit several lenders’ websites and look for the best loan offer according to their eligibility.
Compare lenders based on the loan amount, interest rate, and repayment terms being offered and select the one with the most favorable conditions.
Calculate Expenses Before Applying
Applicants with a high credit score and a good repayment capacity may get approved for a generous loan amount. However, it is not wise to borrow all you are eligible for.
Over-borrowing will only increase the loan burden and make repayment challenging. Therefore, calculate the expenses and decide how much you need to borrow according to your requirements and repayment capacity.
Consider several factors while determining the loan amount, including the interest rate, monthly EMIs, income, and repayment capacity.
Check Interest Rates
Interest rates may vary depending on the applicant’s loan amount, repayment tenure, income, documents, credit rating, financial obligations, and other parameters.
Checking personal loan interest rates from various lenders will give a clear idea of the best market rates for your eligibility.
However, the interest rate is not the only factor to consider while accepting a loan offer. It is also crucial to check their customer service, additional charges, processing fees, etc.
Prepare Documents
Applying for the Fullerton India instant personal loan requires minimal documentation compared to other lenders. However, check their documentation requirements and prepare them before clicking on the ‘Submit’ button.
Online lenders support 100% paperless documentation, which means applicants can scan and upload the documents within seconds.
Therefore, it is vital to check the documents and save their scanned copies. This will help you upload them quickly when prompted.
Reduce Debt-to-Income Ratio
The applicant’s DTI ratio matters a lot in determining eligibility and personal loan interest rates.
It is the percentage of income an individual spends towards other financial obligations. Lenders avoid lending to applicants who are already indebted heavily or those who spend a large part of their income for other necessary expenses each month.
Therefore, pay off existing debts and reduce financial obligations to improve approval chances at better rates and terms.
Don’ts for Applying for a Personal Loan Online
Do Not Ignore Eligibility Criteria
NBFCs have simple eligibility conditions anyone can fulfill with ease.
Still, it is essential to check their criteria and fulfill them. For instance, an applicant must be a resident Indian citizen from 21 to 60 years of age to apply for a Fullerton India instant personal loan.
Besides that, they must be earning a minimum of Rs. 25,000 per month in Mumbai or Delhi and Rs. 20,000 in any other Indian city.
Ignoring the eligibility criteria may lead to a loan rejection, ultimately impacting the credit score.
Do Not Apply for Several Loans at a Time
Compare lenders and apply for a loan judiciously. Many people who need urgent money apply for several loans at a time, hoping for approval from some of them.
However, several loan applications attract multiple hard enquiries on the credit report, leading to loan rejection and reduced credit rating.
Do Not Overlook the Fine Prints
Never ignore the fine prints on a loan agreement’s bottom or side margin. You will mostly find hidden charges and conditions in these sections.
The idea is to include them in the contract but keep them hidden from clear vision. Read these fine prints carefully and clear any doubts before signing the agreement.
Do Not Miss EMI Payments
The repayment term starts as soon as the applicants receive their loan amount.
Making a repayment plan even before the loan application is an excellent strategy. Build credit score, reduce expenses, start saving, and increase income to make repayment easier.
Missing EMIs leads to hefty penalties and reduced credit ratings over time.
Conclusion
These are a few do’s and don’ts when applying for a personal loan.
Fullerton India instant personal loan of up to Rs. 25 lakhs is easy to avail of at competitive interest rates. Eligibility conditions are simple, and documentation requirements are minimal.
However, keep these do’s and don’ts in mind to improve chances of approval and get the best of terms and conditions.
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