Perks of Getting Personal Loans Online

Personal loans are the prime way to get some immediate money at hand. There are many lending institutions and financiers who will provide with immediate financial assistance to genuine and potential loan applicants. These lenders provide such gratifying terms that the borrower is obligated to avail a loan with them. That said, these loans are the most convenient methods to avail a quick loan especially during emergencies. Keeping in mind the urgent needs, most lenders provide personal loans online options too so that it is more convenient for the borrower.

Personal Loans Online Options:

Most of the finance lenders provide simple online tools on their websites for availing a personal loan. You may use these online options either to apply for a loan or for exploring the details for getting a much-needed loan. These online options on the lender’s website can be used to check and compare the interest rates, loan processing fees, and other charges which the lenders might charge you for availing a loan with them. A borrower can avail either an installment loan or an instant payday loans via online application process, although most of the times it is an instant payday loans for short-term purposes.

Here are a few benefits which a borrower can seek while getting an online loan –

1. It is convenient –

Imagine a sequence in which you are filing an online loan application while sitting on your cozy bedside and then, another scene, where you are running out in the hot sun and waiting outside the lender’s room to file a loan application. Which do you think is more convenient? Undoubtedly the online option!

2. Save A Few Pennies –

Most P2P submitted loan applications are levied with other additional fees which may increase the repayment amount or the EMIs, depending on the loan type you are availing. However, with an online application, you will not have these additional fees which will help you save your cost.

3. EMI and Other Calculators –

There will be options for checking and calculating the interest rates and the respective EMIs or the loan repayment amounts. The digital calculation tool will solve your doubts regarding the complex calculations for the EMI amount with the interest rates, etc.

4. Information Accessibility –

All the information required to know about a loan process and other related details will be displayed on the website by the creditors. There will be all the data and cue related to the APR, the eligibility criteria, the repayment options, processing fees and other additional fees if charged, documents needed, and other small detail regarding the loans will be provided on the online portal.

5. Least Possible Documentation –

Unlike the banks, personal loans do not need any elaborate verification and paperwork to be done. These lenders do not consider the credit scores and will provide loans for bad credit without any collateral. The only needed documents will be to prove your age, residency, income, employment, and checking account details.

Tips to Improve Your CIBIL Score

A good CIBIL score can help you in achieving many of your life goals with ease. Whether its that dream house that you have been planning or the dream vacation, you have been coveting, access to credit can ease the process substantially. A bad CIBIL score on the other hand can make access to credit very difficult. But there are ways in which you can improve your CIBIL score and achieve your goals.

Some of the ways in which you can improve your score are

Pay EMIs on time

The cardinal rule of good credit history is to maintain your payments in time. This factor plays a crucial role in your score and any delayed payments adversely affect your score. Make sure that your bank account is funded well in advance of the EMI due date, so that there are no bounces and unnecessary penalties due to the bounces.

Using your credit limit

Use your credit limit on your credit card prudently, because over utilisation or maxing out your credit card month on month can affect your credit score. Also not paying your outstanding due amount every month and just paying the minimum amount due monthly can affect your score. For example, if your credit limit on your card is Rs. 50,000 then make sure your are not spending more than 50% of the same ie not more than Rs. 25,000 on your credit card.

Credit Hungry Behavior

Any credit hungry behavior ie applying for too many credit cards or loans within a short span of time can affect your score adversely. Plan your credit requirements in advance. If you are planning to buy a house, make sure that you don’t apply for any other types of credit like personal loan or car loan in the preceding 3 months, so that getting an approval for your home loan is easier and smoother and your eligibility is higher. Too many enquiries in your credit report is a sure way to get your loan application rejected by lenders.

Check your credit report periodically

It is a good practice to check your credit report periodically. Check for details like loan closure etc are updated correctly. Some banks fail to update the bureau in which case it might show erroneously on your report thereby reflecting on your score. Get issues like this sorted by raising the issue with the bank and bureau and sorting it out immediately. Sometimes, loans and credit cards which you have never taken might also reflect in your credit report, in which case, it is best to highlight the issue to the bureau and get it resolved so that it doesn’t impact your score negatively.

CIBIL score of 700+ is usually considered good enough for getting your loan application approved. Follow some of these rules and you can see a positive impact on your score within a few months.