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5 Things to Check While Taking a Personal Loan

There are several reasons to take a personal loan. If you ever find yourself in need of urgent funds, an instant loan online is one of the best and easiest options available. KreditBee is an online loan platform that offers quick loans up to ₹3 Lakh, you can get the funds disbursed to your bank account in just 10 minutes without any hassles.

It is now easier than ever to get a personal loan online in a matter of minutes. However, this also means that you should be all the more thorough while checking every step of the application process. Here are some of the most important factors to consider while taking your loan.

  1. Loan Amount

When you need funds, evaluate your specific needs and figure out exactly how much you need to borrow. When applying for and receiving your loan, there will also be a number of charges and expenses like processing fees among others. Set aside a portion of your loan to manage these expenses as well as any extra expenditures you might have. You can also give yourself an extra one month cushion by repaying the first EMI from your initial loan amount, this should make it easier to repay all your future EMIs on time. Choose a loan amount that you’re confident about repaying because your payments can impact your CIBIL Score in a big way.

  1. Lender Credibility

Getting a loan is usually regarded as a difficult and tedious process. Although, With the advent of online loans, getting a loan has become a lot easier than before. However, this has also given rise to a number of fake lenders who advertise their fraudulent businesses on the right channels or mediums. Always do a thorough check of the lender’s credibility to ensure that they are a legitimate RBI approved lender. You can check the RBI website to view the list of approved lenders. Avoid borrowing funds from anybody who is not a RBI certified lender.

  1. Eligibility Criteria

Before applying for your loan, make sure that you meet the necessary criteria to be eligible for your instant personal loan. Apart from a good CIBIL score and credit history, several lenders have their own criteria that should be met before they can disburse the funds. Make sure that you read up on the necessary criteria to get a loan from any lender. The eligibility criteria for getting a loan from KreditBee is quite straightforward and simple. Firstly, you must be a citizen of India. Secondly, you must be above 21 years of age and below 45 years of age. Lastly, you just need to have a monthly income that is above ₹10,000. If you fulfil these basic criteria, you can apply for a loan from KreditBee

  1. Your Credit Score

Your credit score is one of the most important factors that will be considered when you take a loan. Usually, your credit score is calculated based on your repayment history of EMIs or loans, your utilisation of credit, and your general borrowing history. Though a good credit score is not mandatory to avail a loan from KreditBee, it is usually one of the most commonly considered factors when taking a loan from anywhere. A good credit score can always help you get a higher loan amount with better terms and interest rates. With KreditBee, even new-to-credit customers stand a very good chance of getting a personal loan without any hassles whatsoever.

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  1. Interest Rates

Interest rates are calculated based on the loan amount, your prior repayment history, your scores from credit bureaus, your monthly income and so on. Before taking your loan, compare interest rates between banks and other lenders and use a personal loan EMI calculator to work out monthly payments that you’re comfortable with. Your interest rate also depends on the tenure or repayment time period that you choose for your loan. Choose a convenient time period that works for you and give yourself a cushion to repay your loan on time.

  1. Offers and Prepayment

When taking a loan, you can get great savings at different points of the process. KreditBee has a wide range of deals that let you save money on your loan’s processing fee and on other charges. The coupon codes provided also offer big discounts on interest rates along with exciting cashback offers. Apart from several offers that help you save money, you can also close your loan early without any extra charges and take out a new loan with an improved credit limit.

  1. Repayment Plan

While applying for an instant personal loan online, you should carefully read all the documents and choose the repayment plan that works out best for you. If you take a smaller ticket-size loan from KreditBee, you can choose repayment tenures from 3 months all the way to 24 months. The longer the tenure you choose, the smaller the monthly payments are. However, longer repayment periods could accrue more interest depending on the ticket size of your loan. Plan out your finances for the entire duration of the loan, and try to keep some funds aside to give yourself a grace period for at least the first EMI payment. Making all your payments on time will likely build up your credit score in a positive way.

Conclusion

In short, make sure to conduct proper research on all aspects of your loan before you decide to borrow the funds you need. KreditBee is very transparent with all the charges it levies and mentions them all upfront. When you borrow, check the credibility of the lender, compare the interest rates with the current market and keep yourself well informed before you make your decision.

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