A personal loan is a convenient financing option in India. It is a more viable option than credit cards due to affordable interest rates, easy eligibility and simple paperwork. The best ones require no collateral and fully rely on your payment history. It is especially helpful for millennials and Gen Z who might not have valuable assets to pledge. LazyPay personal loans, better known as Xpress Cash offer funds up to ₹5 lacs to serve diverse needs like two-wheeler purchases, home renovation, wedding expenses, medical emergencies and travel costs. You can extend your limit by another ₹1 lac with just a few clicks.
A personal loan is a great idea if you have stable earnings and a healthy credit score. Borrowers can pay back via pocket-friendly EMIs spreading over the next 3-24 months. This saves us a cash crunch during festivals when we mostly bust our budgets. As much as a personal loan is quick and simple, beginners must follow a few golden rules before applying. It removes confusion and ensures a seamless borrowing experience. You may also be able to tweak your strategies for an informed choice. Read on.
Tick off the Eligibility
A good personal loan requires only a few boxes to tick off. You must be 22-55 years old Indian salaried individual belonging to major tier I and tier II cities. Meeting these requirements can be the first step toward proceeding with the loan. Else, it reduces the chances of getting the loan application considered. It also wastes plenty of time and delays the personal loan which is problematic in case of a crisis. So, head over to the official website of the lender or simply call the authorities to check if you are eligible for the funds.
Know the Application Process
A personal loan is one of the quickest products to get delivered to you. But it is necessary to have a clear idea of how a personal loan works. This helps to reduce the chances of confusion and errors along the way.
Here’s a look:
Step1: Check your eligibility using the basic details.
Step 2: Choose the required amount and the EMI plan as per your needs.
Step 3: Do one-click KYC, link your bank account and get the money in your bank.
Get in touch with the experts in case you get stuck. You can also head over to the official site of the lender to get an idea beforehand to be able to go about the process independently.
Keep a Healthy Credit Score
A personal loan is not secured by collateral. It means the lender will do a credit score check and completely rely on it to determine your creditworthiness. A score between 700-900 would be considered impressive. It shows that you have been financially responsible and committed to your debt obligations in the past. A candidate who can assure their seriousness and credibility is more likely to qualify for an unsecured personal loan.
Payment history (30%), debts (30%), length of credit history (15%), new credit (10%) and credit mix (10%) makes up your CIBIL score. So, try to improve in every field to be able to arrive at a ‘good’ credit score. You should also check the report for errors, increase your credit limit and request to remove the negative entries from your credit report.
Arrange the Documents
A personal loan is a fully digital process. You will have to upload PAN number, bank account number and IFSC. Net banking details might be required for auto-repayment. Make sure every document is updated and true to your knowledge to eliminate suspicion. It should be fully authentic to reduce the chances of loan rejection. Genuine information can speed up the entire process without multiple verifications.
Download the loan App
This is the first step of the loan application process. Get the app from the Google Play Store or the App Store. You can check the Help Section that comes with better categorisation now so that you can enjoy a smooth loan application process. A good one also has a robust data security system in place so that no information is leaked to third parties. This way you can share your sensitive financial information without issues.
Apps make it easy to deal with personal loans like managing EMIs, tracking the overall spending and getting an idea of the outstanding balance directly. You can also learn about a few features of the loan which helps you make an informed choice.
A personal loan saves you from creating a contingency fund over the years. You can borrow it anytime 24×7 which is extremely beneficial during emergencies. A proper credit score check, presenting the right documents and reading the terms and conditions can ease the whole process. You should also have a clear idea of the processing fees and charges to be able to arrange for the finances.