As per data put forth by the Reserve Bank of India, despite other non-food credit sector witnessing a moderation in credit growth, the personal loan segment held steady in FY2019-20.
The popularity of these instant personal loans can be owed to several reasons, the foremost of them being a substantial amount without end-use restrictions. Further, the introduction of instant loan apps by financial institutions in India has made it easier for borrowers to avail the advance.
Nonetheless, there are several factors that borrowers should bear in mind before applying for an instant loan. These are as follows –
- Credit score –
Since personal loans are unsecured advances, lenders take factors like an individual’s creditworthiness and income into account before deeming them eligible for the loan.
Borrowers should, thus, take special care to maintain a healthy credit or CIBIL score. This can be done by paying outstanding dues on time, keeping credit utilisation low, managing debt, etc. In this regard, borrowers can make use of online loan apps to track and manage the credits availed.
- Consider all loan-related costs –
Borrowing an instant personal loan comes with several additional costs like processing fees, cheque bounce fees, etc. Thus, before availing the advance, borrowers should take note of these to have a better idea of the overall expenses. Personal loan apps made available by lending institutions, can provide such information to potential borrowers.
- Look for offers on loan –
Several financial institutions offer benefits like pre-approved and recommended offers that can make availing personal loans faster and easier. Individuals should look for such offers on the advance before applying for the same. For instance, the Bajaj Finserv app – Experia supplies borrowers with information about every offer put forth by the NBFC.
With such information at their disposal, individuals can apply for a personal loan easily via instant loan apps.
Also Read:- 4 Reasons to Apply For Instant Loan Via Instant loan Apps
