Urgent requirements of funds may pop-up at any. Whether it’s an emergency or the deal on your wishlist item that is never going to happen sooner or later, you can have the requirements of funds that you never thought of. And in such cases, a personal loan can be handy as such a loan gives you quick access to the fund you’ve applied for. And if you’re a first-time personal loan applicant, then here are some considerable criteria or facts that you should always remember. To apply instant personal loan, visit us.
Table of contents: What should I know as a first-time personal loan applicant.
- The Income Requirements
- Your Existing Liabilities
- Your Credit Score
- Vital Components of Personal Loans
- Selection of The Lender
- Related Fees And Charges
- Avoid Scams
- Preclosure Facility
- The Right Documentation
- Understand The Agreement Thoroughly
Frequently asked questions:
- How can I get a personal loan as a first-time personal loan applicant?
- What should I know as a first-time personal loan applicant?
- How do I fill out a personal loan application?
- How do I get my first credit score?
- Can I get a personal loan without CIBIL?
- How can I quickly raise my credit score?
- What reason should I mention while applying for a personal loan?
- What documents do I need to submit for a personal loan?
- What should be the reason for my personal loan?
- What is the best way to get approval for my personal loan?
The Income Requirements
There are numerous lenders available online and offline with different eligibility criteria. Your income is just one of them that dictates your potential as a borrower. Some lender lends personal loan at a low-income range, i.e. Rs. 12,000 per month, but some may require at least Rs. 25,000 as your monthly income. So check for the income requirements first, and then proceed to apply as a first-time personal loan applicant.
Your Existing Liabilities
Check your current financial conditions and look for the existing liability that you’re repaying from your current paychecks. Being a first-time personal loan applicant, you need to analyze your existing liabilities to understand your repayment ability. And that will help you to decide the personal loan amount that you can apply for.
Your Credit Score
Your credit score has the ability to decide your credibility for a personal loan. A poor credit score can lower your potential as a first-time personal loan applicant. So make sure that your credit score is matching up with the minimum requirement of the score.
Vital Components of Personal Loans
The rate of interest, tenure, and EMIs are the vital components of a personal loan that you should be aware of as a first-time personal loan applicant. These components may vary from lender to lender. So make sure that you know the EMI you’re going to pay for the selected tenure. At Roopya, you can calculate your EMIs using the EMI calculator.
Selection Of The Lender
There are numerous banks and NBFCs that offer different maximum personal loan quantum different rates of interest. So, it is important to select the right lender for you who can give you access to your required fund in the least time, at a lower rate of interest along with flexible repayment tenure and low processing fees. At Roopya, you can get the top personal loan lenders in the market. So it will be easy for you to compare among them as a first-time personal loan applicant.
Related Fees And Charges
Apart from the interest and processing fee, a lender can charge various other fees and charges. And as a first-time personal loan applicant, you should be aware of those fees and their rates such as late payment fees, pre-payment charges, statutory charges, part-payment fees, etc. Make sure that there are no hidden charges or you’ll end up repaying more amount than usual.
Due to the existence of too many lenders in the market, there are chances that you end up borrowing from an unauthentic lender or opting for the 0% EMI schemes. Unrealistic personal loan offers and the 0% EMI schemes with higher processing fees can cause you a higher repayment amount. So being a first-time personal loan applicant, you should apply on an authentic credit platform that has multiple authentic lenders to choose from.
Most personal loan lenders come up with the preclosure facility that enables you to repay the loan before the maturity of the opted tenure. However, that preclosure facility costs you a fee and can have some conditions also. As a first-time personal loan applicant, you should know the fees and terms regarding this matter.
The Right Documentation
You may need some documents for the application process. The online application will need you to upload the PDF format of those documents. But the hard copies should be with you to produce whenever the lender may ask for verification purposes.
Understand The Agreement Thoroughly
As the first time personal loan applicant, you should read the loan agreement thoroughly and understand each of the terms and conditions mentioned there. Besides, make sure that the EMIs, interest rate, and tenure are mentioned clearly in the agreement to avoid any miscommunication.
Here are the answers to some frequently asked questions that a first-time personal loan applicant may ask.
1. How can I get a personal loan as a first-time personal loan applicant?
Getting a personal loan for the first time is quite easy because of the online credit platforms. You have to consider facts such as income, credit score, interest rates, fees, tenure, comparison between lenders, etc. to get the personal loan as a first-time personal loan applicant.
2. What should I know as a first-time personal loan applicant?
You should know your requirements, repayment ability, personal loan interest rates, loan quantum, tenure, preclosure options, etc. before applying for a personal loan.
3. How do I fill out a personal loan application?
To fill out a personal loan application, go to the lender’s website. Check the eligibility criteria, enter the personal details. Opt for the required loan amount and tenure, then upload the documents.
4. How do I get my first credit score?
You can get your first credit score by simply having a credit card. Utilize it frequently. Then repay the dues on time. Initially, the score can be negative, zero, or a positive digit that is below 300. But over time it will increase.
5. Can I get a personal loan without CIBIL?
Yes, you can. To get a personal loan without a CIBIL score you must have a sufficient income to prove your potential as a borrower. Otherwise, you have to opt for a lower loan quantum or produce collateral or guarantor for the approval.
6. How can I quickly raise my credit score?
To raise your credit score quickly, pay your credit card bills on time, don’t opt for multiple credit cards, use your unused credit cards, use the cards frequently.
7. What reason should I mention while applying for a personal loan?
The personal loan amount can be used to pay any of your financial requirements without any obligation to tell the purpose of taking such a loan.
8. What documents do I need to submit for a personal loan?
Your Aadhaar card, PAN card, Voter’s ID card, Passport, utility bills, bank statements, salary slips, etc will be needed for a personal loan.
9. What should be the reason for my personal loan?
There is no such obligation to mention the reason for your personal loan.
10. What is the best way to get approval for my personal loan?
Meeting the eligibility criteria and applying for a reasonable loan amount according to that criteria can your loan application approved.
As a first-time personal loan applicant, taking these facts into consideration also lowers the chances of rejection of your personal loan application. So let us know how helpful these facts were and send us emails for any query regarding this matter.