Personal loans - a credit scheme wherein a person facing a dire need for money get approved for a short-term, collateral-free personal loan. Now, given the fact most of you already know it, if you ever plan to make a request for the said credit scheme, below are certain things we would like you to remember.
Things not to do while taking a personal loan:-
1) Apply with a poor CIBIL score: Personal loans are approved based on the applicant’s CIBIL score. If your credit score is not up to the mark, you can’t expect to get approved for an affordable interest rate deal. Therefore, it’s always better to check your CIBIL score in advance before applying. Doing so gives you an edge over your loan application and increases your bargaining power.
2) Not paying attention to eligibility condition: Irrespective of how eligible you think yourself to be, you must take a look at the eligibility conditions specified by the lenders. Your monthly income and your age aren’t the only factors considered before granting a loan, there certainly are other factors. So, take a brief look at the lender’s website and gauge your eligibility based on the criterion's shared.
3) Unstable job/ lack of stable source of income: Lastly, if you are planning to leave your job or you’re a regular job-hopper, avoid loan applications. Job and income stability are two of the most important conditions every loan applicant has to qualify in order to get a loan.