If you had your way, you will not take even a rupee of loan ever again. But we don’t have our way always. So there can and will be situations when your money requirements are more than what you can arrange from your own sources. In such a case, you will need to look at the option of taking a personal loan.
- Since personal loans are costly forms of loans, you would want to reduce the actual loan amount as much as possible. So say if your requirement is Rs 3 lacs and you can arrange Rs 1 lac from your savings and borrowing from friends, then your actual loan requirement will be Rs 2 lacs.
- Once the final amount required is known, you can use online personal loan EMI calculators to know the expected EMIs for your loan. This knowledge can be helpful in making financial plan in near future.
- It might seem easy to take the loan from your existing bank. But its possible that other lenders might have better loan offers. So check the rates of interest available with other lenders. Remember that lower the rates are, better it is for you.
- Now if you already have few loans running, then remember that no lender will give you personal loan if your existing EMIs eat up 40% of your net take-home salary.
- Also ensure that your repayment record of existing loans is good. Personal loans have no collaterals except your credit history. Therefor the lenders will only lend to you when you have a good credit record with decent repayment history.
- These days, many NBFCs are using technology to further speed up the loan process. You can now apply for personal loans online. Once the application process has started, you would need to supply documentary proofs for income, address, identity, etc. Your money will be disbursed when your loan is approved after lender becoming satisfied with your financial profile and loan repayment capacity.