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Tuesday, August 27, 2019

7 Rules To Consider While Borrowing An Unsecured Personal Loan

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!

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