• Skip to primary navigation
  • Skip to main content
  • Skip to footer
WittySparks Logo White

WittySparks

Ignite Your Thoughts

  • Topics
  • Reviews
  • Subscribe
WittySparks / Finance / Want to Secure a Personal Loan? Know These 4 Terms
How to secure personal loan

Want to Secure a Personal Loan? Know These 4 Terms

Finance May 27, 2020 by Nishitha

Leading a comfortable life is like a dream come true. Sometimes, you might require extra help to make that happen for you and your family. To manage your regular finances or to have a financial backup for various life events like marriage and childbirth, you can take a personal loan to fulfill your financial requirements.

In the current situation where the spread of the Covid-19 virus is causing a financial crunch for many, opting for personal loans is a good choice. However, you must know that you have to prove your creditworthiness to secure a personal loan. The benefit of these loans is that they do not require any security.

You must understand the following pointers before you plan to borrow a personal loan:

On this page

  • Application and Eligibility
  • Reason For the Loan
  • Choice of part-payment, Prepayment, and Foreclosure
  • Choice of Bank/Lender

Application and Eligibility

The first and foremost requirement is that all the documents are well in place for the loan. With the facility to apply for a personal loan online, many banks have made it a painless procedure. You can either visit the bank or fill it online after reading the terms and conditions of the plan. The process of personal loan requires these four steps to be followed:

  • Filling the complete loan application
  • Processing of the documents
  • Underwriting as required
  • Funding by the lender

You will be declared eligible for the loan only when you have a good credit score. The other factors that fall under the eligibility criteria are age, regular income, repayment capacity, and many others. Make sure you consider the eligibility criteria of the bank that you choose to apply for a personal loan.

Reason For the Loan

Personal loans are a popular choice, as they are not specific to a particular reason. You can take it for home renovation, medical emergency, wedding festivities, and travel and education purposes. By knowing the purpose of a loan, you can ensure that the loan amount won’t get spent unnecessarily. You can only use the Equated Monthly Income (EMI) calculator to evaluate your eligibility for the amount you need. The process will be less tedious for you if these factors are analyzed and managed well in advance.

Choice of part-payment, Prepayment, and Foreclosure

When you research about personal loans, you will learn that there are three ways which you can follow for loan repayment. Different lenders charge fees according to the variations in time for repayment. Some banks do not allow prepayments, while those who do, charge an additional fee. The interest charged will be less for the part-payments when the amount is paid before the scheduled EMI’s.

Foreclosure refers to the complete payment of the loan before the tenure of the loan ends. Here too, you will be charged a fee as per the bank’s rules and regulations.

Choice of Bank/Lender

While you find many banks and lenders offering personal loans, you must carefully examine their offers before you zero in on any of them. You must not select the first offer that comes your way. It is crucial that you research the market for better deals.

When you get a personal loan, you must ensure that it does not cause a financial burden. You will find various lenders providing different interest rates while others charge you with a non-refundable processing fee. Since the selection of a plan requires your time and attention, make sure you do not make any decision in a hurry. Choose a reputable bank like Axis Bank which you can rely upon. The bank is known in the market for its seamless personal loan application process and quick disbursal of the loan amount based on your eligibility.

The right use of a personal loan can enable you to achieve your dreams and wishes. While the loan helps you realize your dreams, you must ensure regular repayments on time. Failing to do so may cause a drop in your credit score and can result in complications for other loan requirements in the future. So, be careful when you apply for a personal loan to deal with your finances.

Featured image source: Freepik (Affiliate Link)

Appreciate your opinion on this topic on social media by tagging us @wittysparks
  • LinkedIn
  • Twitter
  • Like
  • Pinterest

Related Topics

  • Why Applying For A Personal Loan Online Is Easier Than Ever
  • What is DeFi in crypto? How it works and its future in 2022?
  • Exclusive FinancePal Reviews 2021 you must read before getting it
Launch Offer
Rocket.net - Managed WordPress hosting
Rocket.net - Managed WordPress hosting
$1 for first month, $25/month

A highly secured WordPress hosting platform powered by Cloudflare enterprises with customized services for agencies, eCommerce, and small businesses.

  • PageSpeed Guarantee
  • Ultra Secure Platform
  • FREE Migrations
  • Automatic Updates
Try for $1.00 Our Review
We earn a commission if you make a purchase, at no additional cost to you.

Our Favorite Tools

Semrush - SEO and Marketing Tools
Semrush - SEO and Marketing Tools
$119.95/mo
Try for FREE Our Review
Semrush - SEO and Marketing Tools
Lasso - All-in-one Affiliate Marketing Plugin for WordPress
$29/month
Start Free Trial Our Review
Semrush - SEO and Marketing Tools
Grammarly - AI-powered writing assistant
$12.00 / month
Try for FREE Our Review
Previous Post: « Gain Automation and Higher Conversion Rate by Integrating Live Chat Feature in Apps
Next Post: 4 Factors That Define Your Term Plan Buying Journey »
Profile picture for Nishitha

About Nishitha

Co-founder of WittySparks
WittySparks Staff

I am done with my Physiotherapy Graduation. And I always try to share Health and technology tips with people. Apart from Physiotherapy and being a tech savvy, I do explore more on Technology side and I keep sharing my findings with wider audience.

View all posts by Nishitha
  • LinkedIN
  • Twitter

Footer

Search

Exclusive Coupons

  • Moqups Review - Use coupon code “WITTYSPARKS" for 20% off or "PARTNERS50" for 50% discount on all plans.
  • Serpstat Review - Use coupon code "wittysparks_discount" for 30% off.
  • WPForms Review - Use coupon code "WITTYSPARKS" for 50% off.
  • WPPayForm Review - Use coupon code "wittysparks" for 10% to 40% off.

Affiliate Disclosure

If you make a purchase from WittySparks links, we will receive a small commission. See our Affiliate Disclosure.

Sponsors

Partnered with FreePik to use the licensed images.

turn to dhgate for smartphone

Follow Us

  • Facebook
  • Twitter
  • Pinterest
  • LinkedIn
  • Instagram
  • YouTube
  • RSS

Copyright © 2022 · Hosting sponsored by Rocket.net (Affiliate link)

  • About Us
  • Contact Us
  • Privacy Policy
  • Affiliate Disclosure