Personal
loans can be secured and unsecured both. Even if you have been borrowing
personal loans in the past, there is no harm in remembering certain rules for
your upcoming transaction. It will allow you to make the most of your personal
loan borrowing experience.
In this
article, we will share with you seven rules regarding unsecured loans. This
will give you an idea of what you need to do when you apply for a personal loan
in India. Thus, read it till the end!
1.
Choosing a Lender
While
borrowing an unsecured loans, you
should carefully choose a lender. Many companies might give you exciting offers
in the beginning but cannot be trusted. Therefore, make sure that you choose a
lender that has a good reputation and past client record.
2.
The Truth of 0% EMIs
There
are many companies that market 0% EMI for unsecured personal loans. However,
the truth is there is nothing like 0% EMI. The company would charge you one way
or the other. As a result, you should gather information beforehand. For this,
you can ask them to disclose their fee and application charges.
3.
No Advance EMIs
A
common trend that has been going around is of paying one or two advances EMIs
for your unsecured personal loan. It can lead to borrowers paying extra than
what the contract states. For example, if you borrow Rs.1 lakh for 18 months at
an interest rate of 14%, then the EMI is supposed to be Rs.6,190. But if you
pay two EMIs in advance, then the loan amount comes down to Rs.87,620. It will
also reconfigure your personal loan interest rate and make it as high as 17.5%.
4.
Other Charges
To make
money from borrowers, financing agencies have many fee structures. These
additional charges are usually not disclosed to the borrower at the beginning
of the unsecured personal loan transaction. Hence, you need to ask them
regarding all of these charges. It can include things like late payment
penalties and more.
5.
Calculating Interest
Even though it is an unsecured
personal loan, the interest rate needs to be calculated in advance. For this,
you can either use online loan calculator available on the company’s website
or get in touch with them personally. Either way, you will be able to figure
out the unsecured personal loan interest rate. It will help you make a sound
choice.
6.
Foreclosure Rules
The
next thing that comes under our list of important rules to remember is
regarding foreclosure of an unsecured personal loan. There are chances that
your financing agency would charge you a foreclosure penalty. Thus, make sure
you get all the relevant information about the same so that you can be safe
from such expenses.
7.
Multiple Lenders
You should never approach
multiple lenders while looking to borrow an unsecured personal loan. It will
prove to be negative for your credit rating and will also compromise your personal loan
eligibility criteria.
Lenders
such as Bajaj Finserv provides financing alternatives like personal loans, home
loans, business loans, education loans, and more. They also have multiple
pre-approved online offers available for borrowers. You can use these deals to
cut down the loan processing time in half and make it hassle-free.
If you
want to unlock your pre-approved loan offers, then
submit your name and mobile number today!
