Tips to Follow When Applying For Personal Loan in Delhi

Posted by riya on January 15th, 2020

Tips to Follow When Applying For Personal Loan in Delhi

Personal loans are a popular form of credit availed by the highest number of borrowers in India. You can finance any kind of monetary needs with a personal loan in Delhi as these loans come with no end-use restrictions.

Listed below are a few features of personal loan and the reasons for its popularity –

• Quick approval
• Minimal documentation
• Collateral-free nature

These features make approval and disbursal of these loans almost instant. There are some lenders who disburse the funds within a few hours of application. However, you must follow a few tips to maximize the value you get out of your personal loan in Delhi.

5 Tips For Quick Personal Loan Online Apply  

1. Ask For a Reasonable Amount- You must not go overboard with the number of funds you ask for. Use your fixed obligation to income ratio to determine your requirements. Your application will be rejected if you try to avail an amount that is too high. You can use an online loan calculator to calculate the ideal loan amount.
2. Improve Your Credit Score- You can check CIBIL score for free from the official website of CIBIL once every year. Check your score and improve it in case it is below 750. If you have such a score, you will not be able to avail of the most beneficial loan terms. A poor score may even lead to the rejection of the loan application. Pay your bills and EMIs before the due date, spend less than 30% of your credit card limit, keep a FOIR of below 40% to improve your score before you apply.
3. Opt For Shorter Tenor- If you go for a longer tenor of repayment, you will increase your cost on interest payments. Therefore, opting for a shorter tenor is profitable for borrowers as it will reduce cost of your loan.
4. Prepare Documents Beforehand- You will have to provide copies and originals of a few documents. Keep them handy before applying for a personal loan in Delhi. These documents generally include –

• Identity proof
• Employment/Business proof
• Income vouchers
• Address proof
• Photographs

5. Check The Foreclosure Clause- It is highly advisable that you check the foreclosure and prepayment charges before choosing a lender. You should always go for lenders who charge minimum fees for pre-payment.

Follow these pointers to ensure that your application is approved quickly and your cost of the loan decreases substantially.