Avoid These Mistakes Before Applying For An Instant Cash Loan
A financial emergency can come into your life at any point. Personal loan apps can make your life easier with a quick-approval instant loan. If you’re chasing a new microwave or want to enrol in a workshop, money should not be a worry. And that is where personal loan app can help you.
This article covers five mistakes borrowers make while applying for an instant personal loan and things you should never do.
What is an Instant Cash Loan?
An instant cash loan is a small-ticket loan that is processed quickly (generally in one-two hours). When someone needs instant money, some personal loan apps are available that help you get money through your mobile in no time.
Now, every advanced technology has some threat. We need to use them very carefully. There can be fraud third parties, hidden clauses, higher interest rates. Before these threats give you any future tension, make sure you’re well-aware of the personal loan apps and its services.
5 Mistakes Borrowers Make While Applying for Instant Cash Loan
Ignore The Credit Score
If you want to get a quick acceptance from the loan provider, you need to hold a good credit score. This score will authenticate your creditworthiness and let the personal loan app understand that you are genuine.
When you pay an EMI or credit bill within a limited time, your credit score will increase. If your credit score is near 900, that reflects an excellent CIBL score. All the genuine instant personal loan apps in India will check your credit score before approving your application.
Never Compare Interest Rates
Over-excitement sometimes causes a stroke of hard luck. But with money, you cannot take risks. There are various instant personal loan apps in India with different interest rates. Research before you apply.
You need to compare the interest rates provided by different personal loan app or instant loan providers to get the best deal. What can be worse than sinking into an instant debt for a higher interest rate?
Forget to Check Hidden Charges in the Terms
Reading all the terms and conditions before applying for an instant loan is compulsory. Every personal loan app includes some additional charges along with the GST.
Many of the applicants tend to apply for an instant personal loan without giving a detailed read. Avoid such mistakes to prevent a more significant loss. Read all the terms carefully before applying for an instant personal loan. There are several hidden charges or processing fees included in the clause that you need to focus on.
Fail to Check Prepayment Options and Repayment Modes
If you can repay the loan faster, it will be beneficial for you. After taking an instant personal loan from any personal loan app, you need to check any prepayment option, lock-in period, and prepayment charges.
Why carry debt if you can repay the loan amount before the due date. It can give you some reduction in interest outflow.
There are different instant personal loan apps in India. As you get a personal loan instantly, in an emergency, likewise, try to make a prepayment if there is an option available. Also, it is imperative to check the repayment modes. There are different options like EMI through the app or website or an ACH standing instruction.
As discussed in point one, if you miss any EMI, it will affect your credit score.
Forget Updating The KYC
Whenever you are applying for an instant personal loan through any personal loan app, make sure you’ve updated all the personal information in the document. For example, if you want to link your PAN card with the application and the mobile number doesn’t match, your application will be rejected.
Be very serious about these small mistakes and don’t let them be a big problem in an emergency.
Conclusion
As discussed in this article, you need to keep all the important points in mind before applying for an instant personal cash loan. In an emergency, the probability of making a mistake is high. So even if you don’t need a loan instantly, read this article for prerequisites.
Be it a long-term or short-term loan, awareness cannot be compromised. Hopefully, this article will help you to take a personal loan wisely.
