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Top things to consider before applying for a personal loan


Whether it is a medical exigency, or you are planning to set up your own business, a long due vacation to be planned, remodeling of your home, wedding preparation, or consolidating all debts, Personal loan is the best option to go ahead with when faced with scenarios of financial crunch. Personal Loans helps one meet with demands of immediate funds. With Internet available at the helm of every day to day usage, it has become quite convenient for people to avail Personal Loan, with just few clicks.

Since Personal loans comes with heavy interest rates, it is wiser to go for that only when you are in urgent need of money. Personal loan is an unsecured loan with no collaterals attached to it. Hence evaluating critically, all the pros and cons becomes necessary. Though Personal loans is considered to be the best option to go for, during monetary shortfall, it is advisable to evaluate few points before planning to avail Personal Loans.


This article will be beneficial for you when you are planning to avail personal loan:

Comparing the deals: The eligibility of your personal loan varies as per your credit scores. A score of 750 or above should make you eligible for negotiating best interest rates for yourself. Look for the ones offering best USP’s and go ahead with them wisely. Due to tough competition in the market, possibility of getting the best deals are on high.

Flexible tenure for repayment : All lenders at the time of granting loan, look out for the income sources, to understand the borrower’s capacity to repay the amount borrowed. Before availing for the loan, it is therefore advisable to access yourself whether you will be able to repay the amount borrowed on time or not?

Chalk out your repayment options wisely. Filing application from the comfort of your home with just few clicks, has definitely lessened doing rounds of banks.

You can check various options and go about the one, which will suit your repayment capability. All the lenders in the market have come up with EMI calculator on their respective websites. Longer the tenor, decreases the EMIs but overall increases the net amount you will have to pay over the term as interest.

The actual applicable interest rates vary according to the credit score of the individual, company you work for gets you the leverage of reducing the rate of interest to some extent, loan amount and tenure and finally on the discretion of the bank. The amount which you will be paying for EMIs will be calculated on the basis of the loan value, tenure of loan, rate of interest.

Checking the eligibility: All the lenders are majorly concerned about the repayment capability. The most important factors to consider while applying for Personal loan is to find out if you are meeting the eligibility criteria or not. These include your age, citizenship, stable income and your Credit score. Make sure, you pay all the debts, EMIs keeping the record clear. Keep an eye on your CIBIL score, and keep updating frequently. Your credit score, majorly plays the role in successfully providing you with the approval.

Evaluating the need, not the eligibility: Considering the need and not the eligibility, is the key to stay away from unnecessary debts. Before taking the call, figure out, how much is the requirement and how much you can afford to repay? Your debt to income ratio will be the major driving factor in answering your query to yourself. If the requirement of loan amount is higher, check for other income sources which will reduce the ratio. If upgrading income is not workable, consider reducing the amount.

Reading the fine print carefully - It is of great importance to go through in details about the various fore closure, pre-payment, late fee, loan cancellation, EMI bounce fees are included. To save yourself later against all such fees and charges, give yourself the time to go through each and every detail minutely. There are other legal charges, which you might miss to understand before availing the loan. To save yourself time, while opting for loans online, you might go ahead clicking and agreeing to all the check boxes as you proceed ahead.

ICICI Bank Personal Loan Interest rates are the most affordable in the market. It is offered to salaried professionals starting at 11.25%p.a to 17.99% p.a with the easy documentation process and flexible repayment tenures. You can take a loan amount of up to Rs 20 lakh with ICICI bank personal loan. As personal loans are unsecured loans, it does not require a collateral to be put up as security and is disbursed to your account within 3-5 working days, if it meets the eligibility criteria. 

An applicant can take the help of ICICI Bank Personal Loan Eligibility Calculator, to calculate the tentative EMI outflow. An applicant will only have to enter a few details of the loan amount, tenure, and interest rate. It will display a tentative figure which the individual has to shell out to repay the loan amount. It can even be applied online to save time and effort. All it requires to fill the details in the application form and submit a few important documents. If the loan application meets the eligibility criteria, the customer care executives get in touch with the applicant.

With the above points in mind, you are sure not to get lost in the journey of looking for the best personal loan. Comparing only the interest rate is not the only point you will have to consider. Various other factors will have to be kept in mind, in order not to get financial hiccups. Analysing all the points carefully will ensure a smooth journey of your personal loan from the bank. You will be saved from getting mid-way bumps, which can be avoided initially with little bit of extra effort and literacy.

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