Each and every person works to fulfil their dreams. Life is all about reaching those milestones. Think about that Europe trip you have always wanted to take. Maybe there is a superbike on your wish-list. Or perhaps, you have been wanting to renovate your ancestral home – complete with new plumbing, architectural changes, and a modular kitchen. What’s holding you back from achieving these dreams? Often, it is the lack of funds. Luckily, you now have several options through which to achieve these goals. For instance, something like an instant personal loan can help you to fulfill your dreams with ease.

If you need additional funding to achieve your dreams, you can easily take a personal loan to fulfil it. But many people shy away from taking a loan. A common reason is they do not want to borrow money by placing an asset as collateral. Interestingly, you can get personal loans without providing any such security. Here is a look at some other questions that may come to mind when you plan to take a personal loan:

What is Person Loan Eligibility?

Lenders generally offer personal loans only if you meet their eligibility criteria. For instance, most lenders offer loans to salaried individuals working in public or private companies. Those who are self-employed or who run their own business may have to meet further requirements.

To qualify for any loan, you have to meet minimum income requirements. This is usually pre-set by the lender. Furthermore, you should fall within a certain specified age range.

When looking at a collateral-free instant personal loan, you would need to have a good credit score. This is the key to loan approval. Lenders will closely examine your creditworthiness before approving your application for loan. So, make sure to have a good credit score when you seek a personal loan.

You can use a personal loan eligibility calculator to check your eligibility right away.

Is it Important to Shop Across Lenders?

When it comes to loans, it is advisable not to pick the lender in a hurry. You should always take the time to compare the rates, fees, and processing charges across the lenders. A lower interest rate is important, but the fees matter too. These charges are not fixed and tend to vary across the lenders. You can always negotiate the processing fees with the lender.

Some lenders include additional charges on the personal loans they offer. These may seem minor at first but could give you heartburn later. So, take note of these as well.

The purpose of making these comparisons is to reduce the overall cost of your debt. This is why it helps to shop around at several lenders. For instance, you could approach non-banking financial companies (NBFCs) like Bajaj Finserv for personal loans. Apply online for easy loan processing.

Are there any foreclosure charges?

Banks and NBFCs often levy prepayment charges if you close the loan before the tenor ends. The charge varies between 2% and 5%, depending on the lender.

For instance, say, you have 18 equated monthly installments (EMI) left and each EMI is Rs.5,500. To foreclose it, you have to pay the 18 installments together as a single payment. This would amount to Rs.99,000. Now, suppose the foreclosure charge is 4%. This means you would need to shell out an extra Rs.3,960 along with the principal amount. So, it is better to opt for the product with the lowest foreclosure charges.

Summing up

An instant personal loan is a convenient way to get the funds you need quickly. NBFCs such as Bajaj Finserv offer personal loans of up to Rs.25 lakh. They also provide pre-approved offers on personal loans and other financial products. This simplifies the process of availing a loan and helps you save on time. Just share a few basic details to check out your pre-approved offer.

Olivia Wilson is a digital nomad and founder of Todays Past. She travels the world while freelancing & blogging. She has over 5 years of experience in the field with multiple awards. She enjoys pie, as should all right-thinking people.

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