FEW MISTAKES TO AVOID WHILE APPLYING FOR PERSONAL LOAN
Personal loan is required In need of unexpected emergencies or in need immediate requirement of cash, you either ask your acquaintances for it or else you can either avail for some loan like loan as it is easy to avail as the process for loan application is hassle free. By being an unsecured loan, the rate of interest for this loan might go up a bit high as personal loan is rendered to you without any collateral, which means you don’t need to give any security to the bank or any other lender for apply personal loan.
After applying it also many time, people end up getting their application rejected of personal loan, and this may seem very disheartening for you, that after so much efforts you couldn’t avail the entitlements of personal loan. No worries, as there are some factors that you can avoid the next time you apply for personal loan and diminish your chance of getting your application rejected.
1) CHECK YOUR CREDIT SCORE-
Before applying for personal loan it is very important to have a check on your credit score or cibil score. Because it is main thing the lenders check in order to check your creditworthiness and also to check your financial repayment history. In order to avail the facility check before you apply, as if the cibil score is low, then make the efforts to increase the cibil score.
2) MAKING TOO MANY ENQUIRIES –
Making too many enquiries just make the lenders suspicious that since you have applied so many times for personal loan and have got rejected, means that you are a faulty person. As when you apply for a loan, the lender processes your application and makes an enquiry in the Trans union Cibil in order to get the access of your cibil report. Many lenders will then hesitate to provide you loan or may be end up rejecting your application. So it’s better to get the full enlightenment of personal loan before applying.
3) CHECK YOUR ELIGIBLITY-
Before applying for personal loan, make sure you get know about how much amount are you eligible for, for instance if you have applied for 10lakhs and your eligibility is just for 2lakhs then also there are chances for your application to get rejected. So it is a necessary step to check your eligible amount or also to check if you are at all eligible for any amount.
4) OPTING FOR A LONGER TENURE
In order to get less amount emi many people opt for longer tenure, which will do nothing but just increase your debt as you’ll end up repaying more and more interest. Longer tenure leads to lower emi but more debt of interest.
Consider these few points before applying again for personal loan and minimize your chances for getting your loan rejected.