Rising inflation is eating away at our savings. It is becoming increasingly difficult for many households to manage basic expenditures. There could be situations where the funding requirement is immediate. What should one do in such as case? To tackle such situations, one should do a Cost-Benefit Analysis. You should evaluate whether liquidating an asset (that has the potential to appreciate and/or generate income in the future) or availing of a loan makes more financial sense. If managed smartly and responsibly, applying for a Personal Loan could address short-term financial needs without compromising an asset. Your Personal Loan eligibility can be calculated easily online. An online Personal Loan application takes an instant and the entire loan process is seamless and hassle-free. A good credit score is a foremost requirement for the approval of your Personal Loan application.
Things to do Before Applying for a Personal Loan
Before you decide to apply for a personal loan, you must follow these steps:
Step 1: Access your free CIBIL Report to find out your latest Credit Score. If your credit score is more than 750, there’s a good chance of your Personal Loan application being accepted in an instant.
Step 2: Use an online Personal Loan Eligibility Calculator to calculate your eligibility.
Step 3: Check out various lenders for the lowest interest rates on Personal Loans. The rates could differ for different lenders.
Step 4: Once you have selected the lender, a Personal Loan EMI Calculator will give you an estimate of the monthly Personal Loan EMI.
Step 5: After you are satisfied and confident of being able to repay the loan on time, you can apply for a Personal Loan with your preferred tenure and repayment mode.
Tips to Reduce EMIs on Personal Loans
A personal loan is a quick and convenient way to obtain funds for short-term financial needs such as a vacation, a big-ticket white goods purchase, home renovation, medical issues, etc. Here’s how you can reduce your Personal Loan EMI:
- Get the right loan amount: The applicable EMI on a Personal Loan is directly proportional to the amount you borrow. You should be careful about not borrowing more than your requirement. A Personal Loan EMI Calculator gives you the estimated EMI that you will have to repay every month. Budgeting for your EMI every month is a smart way to adjust and manage your finances accordingly. The option of an instant online Personal Loan may entice you to borrow a bigger amount and that could shoot up your EMIs.
- Choose the right loan tenure: Longer the tenure of your loan, the lesser will be your EMI. However, with longer repayment tenure, you pay more in terms of interest. So, if you are comfortable with paying a bigger amount as PL EMI, choose shorter loan tenure and vice versa.
- Get an Estimate of the EMI: Before you start the personal loan application process, it is prudent to know your approximate PL EMI amount. Use a free Personal Loan EMI calculator to help you conveniently estimate the EMI amount and interest rate of your Personal Loan. By doing so, you can adjust your monthly expenses to make room for the EMIs.
- Look for a Low-Interest Rate: The interest rate of a Personal Loan is the biggest determinant of a PL EMI. The interest rate could vary with different lenders and this could make a huge difference in your EMIs. Do your research to find out the lowest Personal Loan interest rate available.
- Consider Debt Consolidation: If you are already servicing multiple loans, keeping track of and repaying multiple EMIs could be challenging. Consolidating your existing loans into a single personal loan makes it easy for you to manage your EMIs and quickly repay your debts as well as lower your PL EMI.
- Consider borrowing from your existing lender: If you have already borrowed from a particular lender and have satisfactorily repaid the same, chances are you might get a lower interest rate on your Personal Loan.
- Pre/ Part Payment: If you have surplus cash, it is advisable to make part payments towards the Personal Loan. This reduces the outstanding loan amount by reducing the principal amount of the loan and also the term of the loan, resulting in lower payable interest. This, in turn, reduces the Personal Loan EMI amount, thus reducing your loan burden.
Can you get a Personal Loan without CIBIL?
There could be a case where a person is new to credit and doesn’t yet have a credit history. In such a case, a CIBIL Report is not generated. Apart from this, a borrower could have a low credit score because of his/her past loan repayment issues. However, in both of these cases, it is possible to get a Personal Loan without CIBIL. For such Personal Loan applications, the lender may have certain additional eligibility requirements. These criteria could be having an income above a set limit, having been employed at the same company for a certain period, etc. For an instant loan without the CIBIL score, your eligibility will depend on your income.
