There might come a time in all our lives when we will find ourselves in need of an urgent personal loan. In such times, we might be in a rush to find a finance solution to meet our needs. However, this haste might cause us to make certain borrowing mistakes that could prove to be costly later on. This article will highlight some of these possible mistakes to help you avoid them in your time of need.
1. Applying for more than you need.
Make sure you apply for the right loan amount. Apply for surplus and you will be paying interest on funds you don’t actually need. Therefore, before you apply, assess your needs and figure out the near-exact amount you need.
2. Not comparing.
Mistake number one would be to take an urgent personal loan without comparing. Though this will help you get a loan quickly, it might cause you to miss out on a better deal in the bargain. So no matter how urgent it is, remember to compare the options available before applying.
3. Not checking your eligibility.
If you’re applying for a small personal loan and you’ve borrowed before, you don’t really need to check your eligibility. Your application should go through without any hiccups. However, if you have an existing loan, or you are thinking of borrowing a large amount of money, it makes sense to use and eligibility calculator before you apply. Just use an eligibility calculator – it should tell you your rough eligibility amount. You should apply based on this amount to be sure of approvals.
4. Not checking your EMIs.
When it comes to an urgent personal loan, most people swear by the ‘will handle it later’ approach to repayment planning. However, when the repayments do begin, they often find themselves living pay to paycheck and struggling to make things work. You can save yourself from this by using an EMI calculator before you put in the application for a personal loan. It will only take this tool a few milliseconds to provide you with every EMI required to repay the loan. This is the kind of information you need to successfully plan your repayment. Like they, what starts well, ends well!
5. Applying without reading the terms.
Sure, we understand that time is of the essence and you cannot afford to read the entire terms and conditions document. Okay, that’s fair, but at least skim through it. If not that, one should at least ensure they are versed with the lender’s terms. Being completely in the unknown could leave you susceptible to shockers and disappointments later on. So try and go through the underwriting of the lender, even if it is a small personal loan.
6. Not referring to aggregator sites.
These sites make point 2, 3 & 4 super convenient. Every aggregator site will highlight the loan amount, tenures, interest rates and processing of the top lenders in India. You can compare all the loan offerings in a few minutes. These pages will also have a calculator that you can use to prepare yourself before applying.
Hope this has been helpful and ensure you do not go wrong with your urgent personal loan. Good luck and happy borrowing!