• SUBSCRIBE

    • WHAT TOPICS ARE YOU INTERESTED IN?

    Step 1 of 3

    NEXT Skip

    HOW OFTEN WOULD YOU LIKE UPDATES ?

    Step 2 of 3

    Skip

    EMAIL ID

    Step 3 of 3

Questions You Should Be Asking Before Availing a Personal Loan

Get The Latest Updates

SUBSCRIBE

Questions You Should Be Asking Before Availing a Personal Loan

  • Highlights

  • Guage the loan amount you need to take

  • Find out the loan repayment tenor in advance

  • Ask about the rate of interest and other charges

  • Decide whether to take a loan from a bank or NBFC

An unsecured mode of finance, personal loans serve multiple objectives. Be it going on a vacation, undertaking home renovation, buying an expensive household item or funding marriage related expenses, a personal loan is a prudent financing option. However, there are certain questions you need to ask before availing this loan.

How Much Loan Do You Need?

Prior to availing a personal loan, it’s essential for you to figure out the loan amount. Gauge your needs to know your exact requirement. Being an unsecured loan, your credit score plays a critical role in determining the loan amount. Opt for a loan that you can repay easily without compromising on your other financial goals. Ideally, the EMIs shouldn’t be more than 40% of your monthly income.

What’s the Loan Tenor?

The tenor varies across lenders. Most lenders offer flexible tenors to ensure you can repay the loan as per your convenience. Compare the tenors offered by various lenders online before taking a call and opt for the one that best aligns with your goals and repayment capacity. The tenor you choose affects your monthly EMIs.

What’s the Rate of Interest?

This is another vital question you need to ask before availing a personal loan. The rate of interest has a say on the monthly EMIs. Compare interest rates offered by different lenders online before taking a final decision. The rate of interest depends on your credit score, loan amount and tenor among others.

Flexi Loan Explained

Things to know before applying for a Personal Loan


Should You Opt for a Loan from a Bank or NBFC?

While earlier, banks were the primary source for personal lending, today many non-banking finance companies (NBFCs) are also offering personal loans. Adopting an innovative approach, some of the leading NBFCs are offering flexi personal loans, where you need to pay interest only on the amount you utilise from your approved loan limit.

Do You Have Any Pre-Existing Loans?

If you are serving any pre-existing loan, the same will have a direct impact on your repayment capability. Lenders will factor this while sanctioning the loan amount. While applying for a personal loan when you are serving pre-existing loans and liabilities, make sure you’ve paid the EMIs of the present loans on time.

Additional Read: Things to Avoid While Taking Personal Loans

Comparing various offerings along with understanding the fine print of the loan document will help you get a good deal.

DISCLAIMER: The personal loan features mentioned in this article are subject to change, based on policy revisions. For the updated product details, please visit the Bajaj Finserv Personal Loan page here.

 

Apply for Personal Loan

Personal Loan Instant Approval

Please enter your pin code

Your PIN Code will help us process your application faster.

Please enter your first and last name
Please enter your Birth date
Please enter 10 digit mobile number
Please enter valid Net Month Salary

PRODUCT GUIDANCE

Things You Can Do To Improve Your Personal Credit Score

PRODUCT GUIDANCE

How to save money on EMI each month by consolidating your debt
5 important things to know before taking personal loan recommen

PRODUCT GUIDANCE

6 Important Things to Know Before Taking a Personal Loan

How would you rate this article

 Please let us know why?

What did you dislike?

What did you dislike?

What did you like?

What did you like?

What did you like?

Next up

PRODUCT GUIDANCE

Find the right personal loan tenor that works for you