5 Ideal features to look for in a personal loan scheme

Choosing the right personal loan from a barrage of options? Here are some tips!

A personal loan can be a saviour when you are faced with a financial crunch and need access to funds quickly and with minimal hassle. Many times, personal loans become the last resort for many individuals. In a rush to get a Personal Loan quickly, many people consider the approval/ disbursement time and the interest rates charged. 

However, there are several other factors that you need to look out for to ensure that you are not trapped with a personal loan that isn’t right for you!

1. Short repayment tenure 

Compared to other loans, personal loans usually have higher interest rates because they are provided without collateral. This makes it essential to check the repayment tenure offered by the bank or NBFC. Extremely short tenures at high interest rates could cause a burden in the long run.

IDFC FIRST Bank’s Personal Loan EMI calculator can help you assess the financial commitment you are making. The bank also offers personal loans which you can apply from IDFC FIRST Website or from mobile banking app and get tenures up to 60 months, thereby ensuring that you can repay the debt without too much stress on your financial capabilities

2. If you have children

By adding your child as a nominee, you ensure that your child gets access to your money in your absence. However, there are two things to note here:

• If your child is an adult, they will be eligible to receive the funds present in your bank account
• If your child is a minor, you will need to appoint another individual not being a minor, to receive the amount of the deposit on behalf of the nominee

3. If you are single and want to secure your loved ones

If you worry about your loved ones and their financial security in your absence, you should consider adding them as beneficiaries or nominees on your account. You can add a parent or even a sibling to your bank account as the nominee.

4. If you get divorced, widowed, or are remarried

Life is ever-changing, and so are relationships. Many a time, unexpected curveballs can change your marital status. It is essential to reflect the same in your financial planning as well. If your spouse was your previous nominee and you got divorced, you may want to remove their name. In such a case, you must immediately add a new bank account nominee. Additionally, if you lose your spouse, it may be prudent to put someone else's name. In the case of remarriage, you may want to add your new spouse's name. No matter the situation, ensuring you have a nominee is critical. 

Essential things you must know before choosing a nominee

Here are some things you can consider when selecting a nominee:

1. It is not mandatory to update a nominee as per law, but you and your family can still benefit from it by adding a nominee. So, it may be in your favour to add a nominee to your bank account. For instance, IDFC FIRST Bank offers competitive interest rates on savings accounts. This gives your savings an excellent power of compounding opportunity to grow your money. Adding a nominee to e the account will help you secure your loved ones in the future and allow them to benefit from the accumulated growth in the account balance.
2. You can add only one nominee for a bank account. In case you want to add more than one person, you will have to do so on a different bank account.
3. When adding a nominee, make sure you trust the person with your money. Putting some thought into who gets access to your hard-earned money is crucial. 
4. You are allowed to change, cancel, and re-add your bank account nominee any time you want. There is no restriction on the number of times you can modify the bank account nomination. 
5. Remember to update the nominee if there is any significant personal change in your life, such as marriage, remarriage, divorce, birth or adoption of children, and other similar conditions. 

These are a few key instances in life where adding a nominee can not only help you be at peace but significantly help your loved ones in trying times too. Bank account nomination is a small but critical step toward financial planning – one that you should not ignore for too long.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.