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A Personal Loan is one of the few financial products that offer borrowers flexibility in usage and repayment. Here, as a borrower, you are not bound by any restrictions and use the funds as you please and pay back the amount at your convenience.
However, the benefits of a Personal Loan are not limited here; there are more, and to unlock them, you need to fulfil a few criteria. So, if you plan to apply for this financial product, check Personal Loan eligibility online and criteria to find the requirements. If eligible, you can get many added benefits with your loan, like lower interest rates, flexible repayment tenure and a larger loan amount.
In this article, we will discuss tips for getting a Personal Loan with added benefits.
Top 7 tips to Get a Personal Loan with added benefits
Here are some tips on getting a Personal Loan with additional advantages.
- Submit the documents required
Besides checking the eligibility parameters, you must keep the documents required to get a Personal Loan handy. The list of documents includes income proof, ID and address proof, employment or business details, etc. If you have all the required documents ready, you can get your loan verification done quickly. Here, time-saving is the additional benefit you can get. Time is crucial in case you need a loan for a medical emergency.
- Proving your repayment capacity
The next point to remember in this quest to secure additional benefits with a Personal Loan is to prove your repayment capacity. Since this is an unsecured loan, lending institutions are reluctant to approve loan applications where the borrower does not have sufficient income.
While the minimum income requirement for a Personal Loan is Rs 15,000, if you have a higher income or multiple income sources, you can not only get a larger loan amount but can also choose to get an extended repayment tenure to repay your loan without a burden.
So, showing your correct and additional income sources can help you get a higher loan amount.
- Ensure professional stability
Along with your income, you need to ensure professional stability to get the best Personal Loan deal. When you do not have a history of frequent job changes or running a business that is not very profitable, you will struggle to convince the lender.
Ensure you have been in your current job for at least six months (salaried) and your business (self-employed) has a vintage of a minimum of 2 years. This will help you convince the lender to extend a Personal Loan without hassles.
- Opting for a realistic amount
Now, the Personal Loan provider may have the capacity to provide you with a higher loan amount, but that does not mean you need to take it. So, depending on your repayment capacity, opt for a loan amount suitable to your profile. Otherwise, you will end up facing rejection, which is not ideal. Taking the right amount with a suitable tenure will help you repay your loan timely without stress.
An unseen benefit of this will reflect in your credit history. Remember, a good credit history will help you secure a loan or get a credit card with a reasonable limit in the future.
- Maintain your credit profile
Maintaining your credit profile is the next point to take care of to secure a better loan deal. Now, this will include your credit score and repayment record. So, as a borrower, you should ensure a good credit score of more than 600. If your credit score is lower than the required, take the necessary measures to better your credit score.
On the other hand, you also need to take care of the loan repayment. Make sure you are not delaying or defaulting on any payments. Also, if there are any errors in the report, get them rectified.
A good credit profile helps you get a favourable loan offer with the desired amount, lower interest rates and flexible tenure.
- Opting for a co-borrower
If you are struggling to unlock a Personal Loan’s added benefits, like better interest rates and flexible tenures, opt for co-borrowing. Since lending institutions consider the applicant’s credit score and income status, your chances of securing the additional perks will increase. With this method, you can also secure a Instant low-salary loan unavailable otherwise.
- Choose the lender carefully
If you want a Personal Loan with additional benefits, choose the lender carefully. You have to find a lending institution willing to offer these benefits. So, research the lending institutions, including their background, reviews and market image. Choosing a reliable lender will help you get the best loan with complete transparency.
A Personal Loan is a hassle-free way of borrowing funds. It comes with its set of benefits, and if you want to enjoy them, you need to be mindful. You can consider the tips in this article to get the best Personal Loan with favourable terms and additional benefits like higher loan amounts, flexible repayment tenures, and low-interest rates.