A majority of people consider Applying for a Personal Loan as a preferred financing alternative when making a four-wheeler purchase. This is because during the application process, paperwork is easy and prompt and the entire procedure is transparent. If you are thinking about applying for such a loan, here is everything you need to know about it.
A Personal Loan is an unsecured loan given by a bank or other financing institutions. Only if you stand true to the eligibility criteria, securing a loan is possible. Going in for a Personal Loan is on every potential car owner’s wish list as it does not require collaterals or any kind of security.
It comes with convenient rates of interest and easy repayment options called EMIs (Equated Monthly Instalments). Generally speaking, you have to keep track of your income, past repayment ability, and the required documents to secure a Personal Loan.
Making sure that you fit the criteria for obtaining a loan is essential. All banks and private lending institutions come with specific eligibility criteria. These conditions vary depending on the bank and lending institution. Do you possess the required documentation they require and are you staying true with regards to the source of income they are suggesting? In addition to this, there are other factors like age, credit score and whether you have the required documentation.
Minimising the risks that lead to rejection of a loan application is imperative. One way of doing this is by getting all the required documents ready at the time of Personal Loan Application. Usually, banks and lending institutions need documents such as bank statements, photo identification proof, proof of address, proof of income, and two photographs. Making sure you get all of these documents ready in advance to ensure faster approval of your loan application.
Banks and lenders have their own policies regarding Personal Loans for a car. When applying for a loan, you have to make sure you are opting for the right option by comparing all available deals. There are many lenders and banks that offer you amazing special loan discounts, exciting offers, and competitive rates.
Comparing features such as your monthly EMIs, their individual interest rates, loan tenure, processing fees, repayment policy, charge structure, the final loan amount, how much loan is disbursed and credit score requirement is very important. This gives you a clear idea of what you are getting yourself into when applying for a Personal Loan.
Taking into account your individual income in addition to the fact that whether you are self-employed or salaried are deciding factors. Banks usually put restrictions on the loan amount in a manner so that your EMI is not more than 40 to 50% of your monthly income.
Taking into account any existing loans in your name is also a prerequisite. For self-employed individuals, the amount of profit earned is the deciding factor when coming to a conclusion about the loan amount. This is as per the most currently acknowledged profit/loss statement.
Applying for a Personal Loan Online Approval is also possible. Our financial experts at My Money Mantra can help you decide the type of loan you should opt for so that you can be the proud owner of your dream car.
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.
Talk to our Loan Specialists toll-free at 18001034004 to know more about our products and offers.