Things to keep in mind while applying for a personal loan

A personal loan helps you borrow money for personal use – such as going on a vacation, buying an electronic gadget, getting medical treatment, or having a wedding in the family. Such loans may seem easy, but you should be mindful of certain factors before applying for one.

To start with, your credit report should correctly reflect your repayment history. If not, get it fixed before you apply. A lower credit score often means a higher personal loan interest rate. Applying for or having multiple loans from several lenders simultaneously can lower your score. If your application is rejected, reapply for a personal loan after a ‘cooling period’ of  three months to ensure it does not impact your credit score.

Also read: 6 Tips for how to get a Personal Loan without any hassle

Do a due diligence 
 

“ Congratulations! You are eligible for a pre-approved loan of up to Rs 1 lakh. No income proof or documents necessary. Apply now! ” You must have received such text messages. Don’t fall for them, as these are most likely to be scams and fraudster-managed activities that are intended to cheat you by asking for a loan fee upfront, before disbursing the loan or they may conceal the terms and conditions and charge a higher interest rate.

Their app may need to be verified, and the website may be unsecured. Their website may look exactly like a famous bank/institution, with only a slight change in the URL. When in doubt, you can call the original lender and inquire whether the personal loan offer is legitimate.

Apart from comparing the interest rates, you should check the interest type – whether it is fixed or variable. Additionally, look at the annual percentage rate (APR), which includes the interest rate plus other loan charges. 

A personal loan may have other hidden costs that should be considered. These include a processing fee and GST, which is usually non-refundable, penalties and charges on partial and complete repayment, and late payment. You should read and understand the fine print before signing any loan documents. 

IDFC FIRST Bank offers an instant personal loan without collateral and with a flexible repayment schedule. It is in addition to providing one of the lowest interest rates (starting from 10.75%) and low EMI (Equated Monthly Instalments) for a tenure ranging from 6 to 84 months. 

Also read: How to calculate bank interest rate on a Personal Loan

Applying for an IDFC FIRST Bank Personal Loan
 

IDFC FIRST Bank allows its customers to apply for a personal loan online simply by filling out an application form and answering a few questions. The process is 100% paperless, and you can apply from the comfort of your home.

The steps are as follows -
 

· Log in to the IDFC FIRST Bank Mobile Banking App or visit the IDFC First Bank website 

· Confirm your basic details post which the loan offer will be generated instantly

· Complete the online personal loan verification process by uploading the required documents

· Once your information is verified, the bank will disburse the loan amount to your bank account

Conclusion
 

IDFC FIRST Bank offers an easy loan application process, competitive interest rates, a wide range of tenure, no collateral, and a flexible repayment schedule. These factors make IDFC FIRST Bank a good choice when applying for a personal loan.

 

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