Minimum documentation, zero restriction on usage, no need of collateral and rapid disbursal of loan amount have made personal loans the best borrowing option for people in need of quick funds. When you’re applying for a personal loan, whether directly or with the help of a platform like GoSahi, it’s extremely important to educate yourself about the entire process and eligibility criteria beforehand. Not only will it help you secure a better interest rate, but will also improve the chances of your loan application getting approved. Below we take you over some important things you should evaluate before applying for personal loan. Doing so will ensure that your loan application will not get rejected.
Your CIBIL score or credit score is a measure of your credit worthiness, and is derived from your credit history. The CIBIL score normally ranges from 300 points to 900 points, with anything over 750 considered good. Having a low credit score can negatively impact your chances of availing a personal loan, as it signifies poor debt management. In such a scenario, either your loan application might be rejected or you might be asked to settle for a high interest rate.
One of the best ways of maintaining a good credit score is by paying your dues on time. This can be ensured by automating your monthly payments. You should also reduce the number of credit cards in your wallet and use only the oldest credit card with a healthy credit history. Furthermore, try to keep your credit utilisation below 30%.
Another excellent way to avail a good personal loan deal is by doing a thorough comparison between the interest rates offered by multiple lenders. The best way to go about this is through GoSahi portal. You simply need to input some basic details and the platform will return the best personal loan offers available to you.
When you apply for a personal loan, you might need to incur various costs such as late payment fee, prepayment fee, processing fee etc. It’s important that you go through all these charges and get a fair idea about the actual cost of the loan. This is another aspect that can be evaluated efficiently with the help of GoSahi website. All in all, it is meant to help you decide if the personal loan is affordable for you or not.
Before you go ahead and apply for a personal loan, you must carry out a thorough evaluation of your requirements, and then prioritize the ones that need to be addressed immediately with the personal loan funds. Some of the common purposes for which people take personal loan include medical emergencies, wedding expenditures, vehicle purchase, vacation and home renovation.
Taking a personal loan beyond your repayment capacity can pose a lot of problems for you later and possibly dent your credit score too. It’s important that you properly plan for the repayment of a personal loan before availing it. This can be done by allocating funds from your income source/s towards EMI payments.
In addition, you must make sure that your income is sufficient enough to make these payments. One of the ideal ways of going about this is by using the Personal Loan Calculator available on the GoSahi website. You must also review your other debt repayments and financial obligations before applying for a fresh personal loan.