They say the 40s are the new 20s and contrary to popular belief, it isn’t too late to apply for a Personal Loan. In fact, with increasing financial stability at the 40s, it will be much easier for you to avail a Personal Loan.
However, with the age factor, there are certain points you need to keep in mind when applying for a loan in your 40s.
In this blog, we will share a five-point guide for Availing a Personal Loan effortlessly in your 40s. Read on.
A Personal Loan is an answer to quick cash needs– whether you seek funds to travel to exotic locations, you want to finance a lavish wedding, or buy an expensive trinket – a Personal Loan can help you with the requisite cash. Unlike other types of loans where you would need to submit collaterals for security, a Personal Loan does not require much documentation or collateral.
You can indeed practically avail a Personal Loan with just a few clicks. Submit the right documentation and your Personal Loan amount is credited to your account within 48 hours. (Though the final processing varies from bank to bank, submitting the right documents can ensure that your loan is dispatched swiftly.)
Being an Unsecured Loan, Personal Loan Interest Rates are slightly higher than other forms of loans, and hence, it is always advisable to think twice before making the final decision.
Now that you know what a personal loan is all about let us find out the 5 essential things you must keep in mind before applying for a Personal Loan.
1. Assess your reasons for taking the loan, thoroughly: A personal loan can be burdensome if you have not thought it through before applying for it. Yes, the cash can be a big-ticket item, but if your requirement can be taken care of without the need of taking a Personal Loan, it is always better to avoid debt.
A trip or a gadget can wait – or you can plan & save for a family vacation, but funding a child’s trip for higher education or fixing a health issue are certain things you could use a personal loan for. Remember, now that you are in your 40s, your retirement isn’t far off, and once you retire, it might get difficult to pay back the loan.
2. Check your eligibility criteria – A Personal Loan is quickly dispatched, but eligibility is not always that easy. A Personal Loan unlike a Home Loan or a Car Loan does not require you to submit collateral and hence, they are slightly expensive. Also, taking a Personal Loan requires the lenders to check your financial background very thoroughly. Even though a borrower could be in between the age group of 21-60, banks are especially wary of people who are nearing their retirement age. Not everyone can pay it back, and hence, the financial background is scrutinised. You should have a high Credit Score, and all your documents should be in place – this ensures that you get your Personal Loan.
For instance, to apply for an SBI Personal Loan, you can assess loan eligibility online. As you submit the documents, the systems are smart enough to tell you your chances of getting the loan.
3. Market research and rate comparison – This is the era where everything is available at a click of a mouse. In addition, there are a number of competitors in the market – all of them vying to catch your eye. Proper market research coupled with a good comparison of the rates should give you a fair idea of which Personal Loan is the best suited for your needs. Online you will find sites that also compare the rates for you – remember, an informed decision can help save you from a flurry of problems and financial burdens later on.
4. Know which lender will serve you the best – With the tremendous competition, it is easy to be lost and confused about the various lenders. SBI Personal Loan has gained popularity because of its low-interest rate and easy document submissions. Similarly, other bank lenders may offer easier application process. As a result, ensure that you are comparing all the rates being offered to you and then choosing your bank of choice – it’s a long term relationship and the more research you do, the better it is for your financial health.
5. Read the fine print, and learn about the charges – Personal loans come with a barrage of documents – each with their fine prints. It may seem like a tedious job, but you need to invest time and read the charges so that it doesn’t come as a shock to you later on and you end up burning a hole in your pocket.
40s are a great time to indulge – most people are financially stable, and their personal lives too are quite settled. Taking a Personal Loan at this time may seem like a fair idea, but do make sure you consider all the five points above and take a Personal Loan only if you think it’s very necessary – after all, your retirement days should not be spent lamenting about money!
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