Things to Know before Applying for an Instant Personal Loan

Personal loans can help you through some of the big purchases in your life while saving on interest rates and a lot of related hassle. Not surprisingly, reports suggest that the demand for personal loans has been increasing in the past couple of years. People generally avail of this facility to finance a home improvement, the next big trip, etc. Here are some questions you must ask yourself and pay attention to before applying for an instant personal loan.

#1 The Amount You Need

The first step while taking any loan is to know how much money you’d need. Depending on what you need and how much you need, you can calculate the amount with the personal loan calculator at Fibe – which clearly indicates your expected EMI, interest costs and many more.

#2 Account Where the Loan Amount Needs to be Credited

If you are availing of a personal loan to pay off a consolidated debt, you can have the amount transferred directly to your accounts. However, usually, banks transfer the amount to your checking account.

#3  The Repayment Tenure that Works for You

Once your loan application gets approved and you have received the amount, you’ll generally have to start paying the monthly instalments back within 30 days. The amount you decide to pay monthly and the interest depends on the time you have taken the loan for.

However, Fibe offers an Instant Personal Loan online within ten minutes. You can check your eligibility on the application, get your documents approved in no time and the loan amount will be deposited into your account in no time.

#4  The Interest Amount

The interest rate for personal loans relies on factors like your credit score, loan amount, time for repayment, etc. If you have a good credit score and you choose the shortest repayment term possible, you’d get the least interest rate on your loan.

#5 The EMI Amount

New modern ways of availing of a loan offer you the chance to choose what kind of repayment plan would work best for you. Depending on the level of your income and the cash flow, you can choose your repayment plan. Sometimes, lenders may provide you with an incentive if you choose the option to autopay.

Generally, people choose to make their monthly payments as low as possible to pay the loans back over a more extended period of time. For shorter repayment periods, the monthly payments are generally high. 

But choosing more extended periods of repayment comes with high-interest rates. And choosing shorter periods of repayment comes with low-interest rates. This only means that because your monthly payments are minimal and the interest rates are higher, you pay much more than the actual amount.

You may also choose to enable smart pay via Fibe. Under this, you can clear off your bills easily, and you wouldn’t have to wait for a minimum due amount to pay. Furthermore, once you approve your Fibe limit, you can pay your entire credit card outstanding via a simple journey on the app.

#6 Your Credit Score

It is essential to know your credit score and ensure you qualify to get a loan. Personal loan lenders generally look for candidates who have good credit scores, especially online banks. However, if you already have a relationship with your bank, it may favour your loan request depending on your bill payment history. People with poor credit scores tend to need help in getting loans. While there are many ways by which you can improve your credit score, one way is to ensure that you don’t apply for loans with too many banks.

#7 The Time Taken for Disbursal

Some lenders deliver funds digitally within a day or two once your application has been approved. Some may even take up to ten business days. If it’s an emergency, be sure to check out Fibe Instant Personal Loan online for faster approvals – in the order of minutes! It is one of the many features offered by Fibe that makes it the best Instant Personal Loan app in India.

#8 How will it affect your Credit Score?

Personal loans can be called a form of an instalment credit card but generally for more significant amounts. So if you pay your loans on time and there is no late fee charged, or the bank didn’t have to run behind you to get the payment, your credit score would only get better. Some may say that adding new instalment loans may improve your credit score, but there is no point in adding yourself to more debt unless you need the money.

Conclusion

Personal loans can be a great solution when you need instant cash. Things can be a bit tricky if your credit score is not good. But if you have kept a good credit score, things will go smoothly for you. After the personal loan gets approved, the only next step is to pay the instalments on time.