5 Things You Must Know Before Applying for a Personal Loan

rise of personal loan app

Personal loans are quick funds to meet instant financial needs. It is one of the most convenient ways of borrowing money. Additionally, documentation for a personal loan is very simple. The funds can be used for any purpose; no questions are asked why the funds are borrowed.

What are the 5 Things You Must Know Before Applying for a Personal Loan?

Availing a personal loan is a difficult choice to make because it has to be paid back in a specific time period with interest. You should have a fair understanding of factors like credit score, interest rates, and other charges. Proper knowledge about these aspects can help you choose a loan that you can comfortably pay back on time.

 Before you apply for a personal loan online, you must know these 5 things:

  • Have A Good Credit Score: Your credit score determines both your eligibility for a personal loan and the amount of your loan. A low credit score will result in loan requests being rejected.  Also, the rate of interest on personal loans varies according to your credit score. Platforms such as StashFin provides loan to both self-employed and low-salaried individuals, and also helps them improve their CIBIL score.
  • Check Interest Rates: Interest rates vary by financial institutions and are determined by many factors including how promptly you have paid previous loans, gross salary, employer’s standing, your employment tenure, etc. It is always good to compare different interest rates from different financial institutions and find the best possible deal. StashFin offers personal loans with attractive interest rates, starting from 11.99%.
  • Plan Your Repayment Wisely: Borrowing a personal loan is easy, but repaying the loan on time can be difficult at times. So, you need to plan everything based on your income before availing a personal loan. Failing to make timely payments of EMIs (Equated Monthly Installments) might result in late payment charges and a drop in your CIBIL score. With StashFin Instant Personal Loans, you have the choice to choose a loan tenure that is convenient to you.
  • Fill Your Application Process Carefully: The application process is minimal for applying for a personal loan online. Also, it doesn’t require any physical visit to the financial institution. The loans could get rejected if the paperwork is incomplete or incorrect. Thus, filling out a personal loan application correctly is very important.
  • Know About the Additional Charges: Please read the fine print in the loan application for any hidden charges or additional costs before applying for a personal loan. Other fees such as a processing fee, prepayment fee, and late payment fee, may be added to your repayment amount. Read the terms and conditions carefully to better understand the additional costs. Transparent pricing is what attracts customers the most. With no pre-payment charges and any hidden charges, StashFin is here to help you get through your financial crisis.

Applying for a personal loan is a smooth and simple process if you are aware of the basic things beforehand. StashFin offers you instant personal loans in a quick and hassle-free manner. To apply for a personal loan with StashFin, visit here.

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