A personal loan is an unsecured loan usually available to salaried people at quite a favourable interest rate. Available to manage various expenses, this is an excellent substitute for other loans like home renovation loans or even sometimes to pay off the medical bills.
Before applying, it is necessary to know the personal loan interest rates as this will help make a concrete decision of the amount and tenure for which you should apply for the loan. The top 7 golden rules to understand while applying are:
1. Know the exact amount of funds you need.
Ensure to check your exact fund needs before applying, as this will avoid the over-borrowing that can exert pressure on you.
2. Check the CIBIL score
CIBIL score is fundamental when applying for a House Renovation Loans. A score above 700 will ensure quick approval, while a score below can lead to rejection and can cause a negative impact on the score further.
3. Check interest rate
There are various personal loan interest rates in the market. It is crucial to analyze the rates and compare them to find out the least to have cost-benefit in the long run.
4. Ensure to compare options
Before applying for a personal loan, ensure to compare the offers of various financial institutions. This will allow you to check the best-suited option that can replace your home renovation loan need.
5. Calculate EMI and plan budget
Home loan is available for multiple tenures, which impacts the EMIs as well. While applying, check the various EMI values depending on tenure and opt for the one that can help you smooth financial management.
6. Check documentation needs
Though the basic documentation needs are some, it is still important to know the basics. It will ensure that you submit all your documents at once and will increase the speed of approval
7. Know all the terms and conditions and charges
Last, the borrower should check all the terms and conditions and charges in addition to the interest rates for personal loans. Not following the conditions can lead to unexpected expenses in the future, which is not advisable.
From checking the CIBIL to personal loan interest rates, a borrower should keep an eye on every aspect for positive returns.
For hassle-free financing, you can apply for a personal loan for home renovation with Bajaj Finserv and get funds in just 24 hours. This NBFC also offers pre-approved deals on its multiple financial products such as personal loans, business loans, credit cards, etc. This pre-approved offer ensure faster processing with minimal paperwork.
