It’s good to apply for personal loans with multiple lenders: A Myth or Fact?

But coming back to the question of, whether application to different lenders will increase the chances of securing a personal loan? Not likely. This is because all lenders in the country refer to the credit rating of an individual, also known as CIBIL score. When a person applies to many lenders, their credit rating is negatively affected as the individual may look credit hungry to the financial firms.

Furthermore, if one lender rejects the loan application, it will further register as negative marking on your CIBIL score, thus further hampering your chances of getting a loan. Thus, with each application rejection, your credit rating will be lowered. Therefore, it is not a good idea to apply to different lenders at the same time.

Personal loans from Bajaj Finserv are easy, quick and collateral-free. What’s more? They also provide pre-approved offers on business loan and home loan among others which enable faster disbursal of funds. Just provide some basic details to know your pre-approved offer.

The final word

From the above, we can easily infer that applying to several financial firms is not a good way to secure a personal loan. The ideal way of going about it would be to do proper research, collect information on different lenders, understand their terms and conditions and pick one with the lowest fees and charges.