An instant personal loan is one of the best funding solutions if you need quick money for any of your needs. It gives you a large loan amount with quick approval and faster disbursement and more.
But if you want to apply for it, then you ought to avoid making some mistakes. Let’s check them out in this short post!
- Not checking your CIBIL score
When it comes to the instant personal loan, your CIBIL score is the most vital eligibility criteria that lenders check. It gives them the idea if you default on the loan or not. Hence, ensure to check your credit score before applying for the instant personal loan. Anything that is 750 or more can help you get the loan approval at a lower rate.
- Applying for many loans at a time
Many borrowers apply for the instant personal loan with many lenders. But when you do that, lenders may not approve your application considering you credit hungry. It can also lower your credit score as enquiries on each personal loan application by lenders are considered hard.
- Applying for a large amount
You may not be eligible for a considerable loan amount, but if you apply for one, then the lender may not sanction it – avoid it.
- Not shopping around
If you don’t compare all available offers in your city and go for the first offer, then you may have to deal with a higher personal loan interest rate and pay bigger EMIs.
- Not going through the lender’s fine prints
Many borrowers are surprised when they are asked to pay extra in the event of late EMI payments, personal loan default and more. It happens when borrowers don’t go through the terms and conditions of the lenders. As a result, they are unclear how much they will pay during many events.