Personal Loans: 3 Fast Facts
As a first-time personal loan applicant, you are excited about applying for the loan and getting it disbursed. You might have an urgent need for the money, or you might want to buy something expensive with the funds. But are you aware of some important facts about personal loans? We present 3 important ones:
#1 Requires one-time documentation
One of the primary benefits of securing a personal loan from a loan app is that you do not have to submit your documents everytime you apply for a loan. The one-time documentation process takes a few minutes and then you are done. In case you are in need of subsequent loans, your documents will already be registered, hence saving you time and effort.
#2 It pays for everything, from holidays to surgeries.
The personal loan is disbursed in a lump sum to your savings bank account upon approval. How you choose to spend it, or whether you choose to spend a part of it or not, is entirely up to your discretion as a borrower. You may withdraw the entire sum to pay for an expensive home remodel, or finance a surgery for yourself or a family member. You could even use the money to book a foreign holiday for two. The unsecured personal loan money can be used for any expense, whether it is an emergency or a shopping or travel jaunt.
#3 Your eligibility decides the loan amount.
Most first-time loan applicants are unaware of the fact that they cannot always get the amount they seek. The loan amount is approved and disbursed on the basis of your eligibility. In turn, your eligibility is decided based on your income, credit score, repayment ability and age. The loan app checks your eligibility and informs you how much loan amount you can get. Suppose your eligibility is Rs 2,50,000, you cannot apply for a loan of Rs 4,00,000. You can increase eligibility with a higher income and better credit score.
Conclusion
Getting a personal loan is simple if you know as much about the product and how it works. Applying at the right time with correct documents and with a high credit score, increases the chances of getting a loan approval quicker.
