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6 Crucial Questions To Ask Before Availing Instant Loan

People often hesitate to take instant personal loans to realize their personal goals, thinking that is a bad idea. However, if you plan it well, you can benefit from it more than you can think. It all depends on how well you manage a personal loan to make the most of it. It is a perfect way to fulfil your need for instant cash without redeeming your savings. 

The Fullerton India personal loan App offers simplicity, transparency, and gives quick results. If you have met with an unexpected event in your life, such as a medical emergency, your wedding, your children’s higher education, or you wish to travel abroad, you can opt for an instant personal loan through Fullerton India’s instant loan app to manage your finances without putting any burden on your pocket. 

You need to plan out your expenses and apply for an instant loan according to your needs. The best part about applying through personal loan apps is that the loan amount is disbursed almost instantly to your bank account. Here are a few questions you need to ask yourself before applying for a personal loan. 

Questions To Ask Before Availing Instant Loan:

 

Q1. What is my purpose for taking a loan? 

First of all, you will need to establish your purpose to apply for a personal loan. If you have a medical emergency or you want to pay for your children’s higher education and you are strapped for cash, then you should apply for it. You should opt for a personal loan only if it fulfils your needs, not your wants. Do not just apply for a loan because your friends are doing it. 

Q2. Is my credit score enough? 

Your CIBIL score plays a crucial role when it comes to getting a personal loan. It indicates your creditworthiness, and lenders only offer loans to borrowers who have maintained a healthy credit score. A CIBIL score below the range of 650 will get your application rejected. So, check your credit score to understand if it is enough to secure a loan.

Q3. How much do I need as a loan amount? 

Assess your needs to figure out how much you need as a loan amount and only apply for an amount you need. You should not apply for a bigger loan amount and get rejected when you can apply for the money you need. Sometimes, you cannot figure out how much you should borrow, but having a plan in place is always better than having no plan at all. 

Q4. What is the rate of interest, and can I afford it? 

When you take an instant personal loan, you will need to repay the loan amount with the interest rate within a loan tenure. You have to ensure that you can repay it without defaulting.  Different lenders charge differently, and it is your responsibility to find a lender that suits your needs. Choosing the lowest rate of interest is one way to see it, but you may not have flexibility when it comes to repayment options. 

Again, it all depends on your needs, preference, and your affordability. You can choose to repay the loan amount within a year, but you will have to incur a higher interest rate, and a longer repayment tenure means that you will incur more interest overall. So, you have to compare and see which one benefits you. 

Q5. Can I afford the equated monthly instalments? 

Your equated monthly instalments include part of the principal loan amount and the interest rate. Before applying for a personal loan through personal loan apps, you have to check your budget and see if you can afford the EMI you are getting. 

You can also determine your EMI through a personal loan EMI calculator. It is an online financial tool available on every lender’s web portal. You can use it for free to figure out your EMI based on your needs and preferences. 

Q6. What are the hidden charges? 

Some lenders have hidden charges and processing fees, and they come out after your loan application is approved. So, you need to look for a lender who has a transparent process and has all their charges revealed upfront. It will ensure that you are dealing with an honest and credible lender. Also, you may choose to repay the loan amount before the loan tenure’s maturity, and there are usually prepayment penalty charges for that which you will have to consider before applying for a personal loan. 

In short, 

Before applying for a personal loan through an instant loan app, plan your finances by answering the aforementioned questions. They enable you to manage your loan to get the best out of it.

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