More than anyone else, the pandemic has struck the common man quite hard. Many blue-collar and white-collar employees have lost their jobs or faced salary cuts and are amid a heavy financial crunch. However, the government is doing all it can to revive the economy and has instructed financial institutions to provide loan assistance to those who need funds. In such turbulent times, a personal loan qualifies as a better option compared to other financial instruments. Using a personal loan can meet multiple commitments such as kids’ education expenses, medical emergencies, and additional miscellaneous costs. Note that if one is paying their loan EMI on time, their credit score can also gradually improve.
However, one must plan carefully and tactically when it comes to personal loans. Sometimes, people take up large loans, exhausting their chances sooner, thus paving the way to loan application rejections. Hence let’s discuss how you can avoid personal loans from Fullerton India rejections by eminent lenders.
- Understand Your Requirements Well: No one knows your financial needs better than you. When you assess the requirements, you also should keep your repayment strategy at the forefront. You need to quote your principal loan amount so that you do not have to borrow again. Do keep your credit score in mind while borrowing. A nominal loan amount would help you with peace of mind in meeting financial requirements and the repayment phase.
- Know and Improve the Credit Score: A higher credit score would help you obtain any loans, be it smaller or bigger. Hence it is essential to know and improve the credit score over time. A credit score is key to any lending transaction and is instrumental in the approval of a personal loan application. For instance, if you have applied for a personal loan from Fullerton India, the lender would look for a CIBIL score of 750 or above. A lower credit score can mean that a borrower has multiple debts and would have bleak chances of loan application approval. A higher credit score would mean faster approval and better interest rates. You can improve your credit score by consolidating debts, paying dues on time, etc.
- Knowing the Interest Rates & Associated Charges: The interest rate is one of the primary factors influencing the repayment phase. A higher interest rate would affect the borrower’s repayment strategy and make them lose interest in availing loans in the future. Many financial institutions offer various interest rates based on their policies and customer profile, etc. One of the best ways to know your personal loan eligibility would be using an online personal loan calculator for identifying details such as interest rates, tenure, amortization schedule, etc. Some of the additional charges that can tag along the loan would be a processing fee, insurance charges, pre-closure charges, and so on. Hence knowing such charges would be crucial for planning the loan and repayment phase.
- Reading the Instructions: In most instances, there are details hidden in plain sight that you need to be aware of, but you may overlook them in a hurry to get the loan approval. To reduce the chances of your application being rejected, ensure you read all instructions/terms & conditions carefully and appropriately fill in the forms. Note that multiple loan rejections can result in lower credit scores as the lenders would frequently check on the credit score from the credit agencies.
- Ease of Transactions: Finally, a borrower must be very particular about choosing a customer-friendly lender with easier and digital loan processing. The objective must be to opt for a lender who provides a hassle-free experience for the borrowers. For example, the documentation and processing for personal loans are completely digitized and paperless.
Conclusion
Knowing all the details about the lending process beforehand can help you save time and effort and make the process simpler and quicker. Compare various loan schemes online and choose a loan that meets all your requirements.
