Dreams motivate people to work harder. People dream of buying a house, starting their business, having a fairy-tale wedding, going on a long vacation, etc.
These dreams may or may not be fulfilled due to some constraints, such as lack of support, financial limitation, etc. If your financial situation stops you from fulfilling your dreams, then a personal loan can be a solution.
A personal loan is a type of unsecured loan that individuals can take from lending institutions to fulfill their needs such as medical emergencies, weddings, making large purchases, debt repayment, etc. Personal loan interest rates are higher than other loans as they are unsecured.
According to RBI (Reserve Bank of India) data, in September 2020, the credit outstanding for the personal loan category was Rs. 26 lakh crore, which rose to Rs. 29.18 lakh crore in September 2021, a 12.1% increase. As per a report, the top reasons for taking personal loans are medical emergencies, children’s education, and wedding expenses in India.
A personal loan should not be taken lightly; it is a commitment to pay monthly payments and interest charges. So, before taking a Fullerton India instant personal loan, you can ask yourself whether you actually need a loan and take a loan only if you are sure.
5 Top Things To Know Before You Take out a Personal Loan
1. Loan Amount and Tenure
Individuals are advised to decide the amount they want to borrow and for how long, depending on their requirement and repaying capacity.
A long tenure loan would mean lower EMIs but more interest obligation and vice versa.
With Fullerton India instant personal loan, you can avail up to Rs. 25 lakhs as a loan to meet your needs. Use an EMI calculator to get an estimate of your monthly EMI and select a suitable tenure.
2. Eligibility Criteria
Before taking out a loan, an individual is recommended to check the lender’s eligibility criteria. It is vital to check the chances that the loan will be approved.
Different lenders may have different criteria.
With Fullerton India, a resident citizen of India between the age of 21 and 60 years who is either salaried employee or self-employed can apply for a personal loan.
Further, the income, credit score, and the existing loans taken by the borrower are also taken into account.
With your PAN and Aadhaar card reflecting current address, bank statements and income proof, a personal loan is easy to get.
3. Credit Score
A credit score is one of the crucial determinants that a lending institution will check before giving you a loan. A credit score indicates the borrower’s creditworthiness. It usually ranges from 300 to 900. It shows the borrower’s repayment capacity. A credit score between 750 and 900 is considered to be good. The higher the borrower’s credit score, the better are the chances for approval of the loan, attractive loan amount, and interest rates.
For a Fullerton India personal loan, an individual should have a minimum credit score/CIBIL score of 750* .
4. Interest Cost and other Fees
The most crucial factor determining the loan’s total cost is the interest rate.
Different lenders charge different interest rates based on the applicant’s age, income, employment, credit score, etc.
A slight difference in the interest rate can alter the total cost of your loan. Personal loan interest rates offered by different lenders can be compared. This will ensure that you get an attractive loan amount at attractive interest rates.
Additionally, borrowers are recommended to be careful about the other charges, such as processing fees and penalties charged on late payment or default.
With Fullerton India instant personal loan, a borrower can get a personal loan at an attractive interest rate, starting from 11.99% per annum. The processing fees are between 0%-6% of the loan amount.
To know more about the interest rates & other fees for Fullerton India instant personal loan, click here.
5. Pre-Payment Facilities
There can be times when you require money urgently, but you soon may have enough money to repay it. This can save a lot of interest costs. Many lending institutions offer a pre-payment facility, but it could come with a lock-in period or pre-payment charges.
With Fullerton India instant personal loan, a borrower may be charged 0%-7% pre-payment charges*. Please note that part-payments towards foreclosure will not be allowed.
Taking a personal loan is a life-changing decision, but an unwise one may make things worse. Needless to say, it’s always best to get all the information before you act.
To manage your finances hassle-free, it is advised to analyze all the points before taking out a loan. Not only that, it is recommended to examine your income and expenses so that you can critically evaluate how you will repay the loan.
With Fullerton India instant personal loan, you will require minimal documentation, all the process is done digitally, and you will get instant approval.
* Terms & Conditions applicable.