A personal loan can bail you out of tough financial situations, especially when secured lines of credit are not an option. The ease and speed with which one receives approval on such loans are primary reasons for their popularity. Nevertheless, make sure you have a proper understanding of the personal loan application process beforehand. Such knowledge aids in opting for the best option while also limiting the financial burden during repayment.
Navi offers hassle-free personal loans via a paperless application process. All you need to do is download the Navi app on your smart devices and receive the funds in a matter of minutes. However, before submitting such an application, consider the reasons for availing the credit.
Personal loans do not require borrowers to pledge any asset as collateral. Thus, it is the first option for many in case of emergency financial needs. Here are some valid reasons when you can avail such a form of credit:
You can consider an online personal loan application to consolidate multiple dues. If you are repaying several lines of credit at once, debt consolidation is a simple solution. With the personal loan amount, you can foreclose your other dues. After that, you only need to keep track of one EMI instead of several payments.
Your CIBIL score is a true reflection of your creditworthiness, and improving the same can unlock better credit offers. A personal loan application can help increase your score significantly with proper financial planning. Opting for small loans and repaying them on time improves this score over time.
Wedding ceremonies are a costly affair in India, with celebrations lasting over several days. Moreover, some individuals prefer destination weddings, which can drive up the cost further. Bank loan application can reduce the burden on one’s savings at such a time without compromising on the event itself.
Other popular reasons to acquire such a loan include funding emergency medical expenses, higher education expenses, foreign vacation expenses, and much more. Nevertheless, before applying, make sure you consider some of the factors mentioned below.
Individuals looking to avail a personal for the first time should remember the following aspects:
Most lenders seek personal loan applications from people with a credit score of 750 or more. Higher scores allow borrowers to get lower interest rates and can allow them to borrow more. Therefore, improving your credit score beforehand is vital for enjoying the best personal loan option.
Rather than borrowing the maximum sum on offer, you should consider your own needs. Keep in mind that opting for higher principal amounts will result in higher EMIs. The best course of action is to have a clear purpose before sending out an application.
A major part of your loan experience depends on the lender you pick. Only the most reputed lenders offer transparency right at the onset with no hidden costs. The choice of a financial institution often determines the interest percentage on your loan as well. Compare the various available options and pick a lender after careful consideration.
Lastly, never avail of such a loan blindly. You should calculate your monthly EMIs beforehand to avoid financial difficulties during the repayment stage. Read on to know more about such calculations.
|Loan Amount||Up to ₹20 Lakh|
|Interest Rate||9.9% to 45% p.a|
|Tenure||Up to 72 months|
Before availing of a personal loan, you have to understand your interest and EMI liabilities. The formula to calculate EMI is given below:
EMI = P x R x (1+R)^N / [(1+R)^N-1]
Do not let this complicated-looking formula put you off since lenders provide online EMI calculators for the same purpose. Enter the principal amount, tenure, and interest rate details to receive instant results. Use the Navi personal loan EMI calculator to determine your EMIs and total interest cost on such loans.
Rate of Interest (P.a)
Loan Tenure (Months)
Checking your eligibility is crucial before initiating the personal loan application procedure. Eligibility calculators can help you understand exactly how much amount you can avail yourself. Additionally, you should know the primary factors that lenders check when determining your eligibility:
After checking eligibility, the next step is to arrange for the documents. Here is all you will need:
Note that eligibility criteria and the list of documents required vary from one lender to another.
Navi offers attractive interest rates on personal loans, and its digital application procedure is streamlined considerably. Download the Navi app on your phone today and follow the steps mentioned below to apply for a loan:
After your fast cash loan application is complete, the lender will verify the information provided by you. Once the details are verified, you’ll receive the funds in your bank account within minutes.
The simplest way to ensure hassle-free cash loan repayment is to create a budget. Besides that, here are a few tips you can consider:
Sending out a personal loan application involves planning and proper execution. Reading this write-up should help you navigate through the various steps of such an application process. It should also make repayment simple.
Looking for urgent loans? Navi offers instant cash loans up to Rs. 20 lakh in a 100% paperless manner. Download the Navi app, apply and get the mount disbursed to your account within minutes.
Ans: You need to bear monthly EMIs to repay your personal loan. However, if you fail to clear one of these EMIs on the predetermined date, you would need to bear an additional penalty. This amount varies from one lender to another.
Ans: Personal loan interest rates can differ based on the eligibility factors of an applicant. Mostly, your age, income, credit score, and employment determine the risk associated and interest rate. Additionally, your present relationship with a lending institution can also affect such rates.
Ans: A co-borrower can improve your personal loan eligibility if he/she has a decent credit score. In the case of co-applicants, lenders consider both your income and that of your co-borrower before setting loan terms. Thus, the risk is lower for lenders when two people apply for the same loan.
Ans: Low CIBIL scores can hamper your chances of acquiring the best terms on personal loans. If you apply for such a loan with a low credit score, you will need to bear higher interest charges. Additionally, banks offer limited principal amounts in such cases.
Ans: A hard inquiry refers to a check that lenders initiate on your CIBIL score after you submit a loan application. Such an inquiry not only reveals your credit score but it also discloses additional markers related to your creditworthiness. Several hard inquiries within a short period can hamper your credit scores as well.
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