Do you envy your friends or colleagues with the latest smartphone while you are still using an old-fashioned phone? If you inquire the cost of most popular smartphones, you will find that these phones can be quite expensive. The newer models tend to be higher priced than older ones, but they all cost a lot. This may result in you not being able to buy your favourite smartphone. Now, you can go ahead and pick up any smartphone you want, thanks to Personal Loans or Consumer Loans.
As the name suggests, a Personal Loan is a short-term, unsecured loan that you can take from a bank or non-banking financial company to meet your personal requirements. Hence, you can use a Personal Loan to fund the purchase of your latest smartphone and/or use the funds for other needs, as well.
A Personal Loan can be used for any personal purchase if you are facing a shortfall. It can be used to fund a new car, medical contingencies or even higher education of a child.
Unlike a Home Loan, which is secured in nature, Personal Loans are unsecured. In other words, you don’t need collateral to apply for a Personal Loan. Instead, the lender takes the following into consideration to approve or reject your loan application:
Lenders always ensure you have a regular source of income, regardless of you being a professional, salaried individual or a self-employed person. The company you are working for also has an impact on your eligibility along with your credit history. So, it is vital you have a stellar credit score (usually 650 or above) for a lender to approve your loan application.
The tenure of a Personal Loan varies from lender to lender and the amount you are applying for. Typically, the term of the loan is anywhere from one year (12 months) to five years (60 months). You can try and negotiate the length of the tenure.
It is prudent to remember that most lenders offer a minimum Personal Loan amount of 50,000. However, the lender will take your income and liabilities into consideration to determine the actual amount. Lenders will ensure that your EMI (Equated Monthly Instalment) is about 40 to 50% of your monthly income.
Since the loan is unsecured, it is essential to realise that you will be paying a higher interest compared to a secured loan. Hence, it is best to choose your smartphone wisely so that you get value for money.
Once the lender approves your application, it takes seven working days for the Personal Loan amount to reflect in your bank account. Alternatively, the lender may give you demand draft or account payee cheque. After the money gets credited, you can purchase the smartphone of your dreams.
A Personal Loan is a great way to fund the purchase of the latest smartphone in the market. However, make sure your credit rating is high, and you don’t have too many outstanding debts. Your chances of getting approval will diminish if you have too many financial obligations to your name.
If you are keen to buy your next big smartphone with a Personal Loan, get in touch with our financial experts at MyMoneyMantra. We will help you Find low-interest rate Personal Loans from reputable lenders.
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.