Key Things to Consider When Taking a Personal Loan | Bandhan Bank

Key Things to Consider When Taking a Personal Loan

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Key Things to Consider When Taking a Personal Loan

Posted on July 15, 2022

Are you planning to take a personal loan? A personal loan has become one of the most popular financial products that people avail. A personal loan is very helpful as it supports you in a financial emergency. When opting for a personal loan, you can choose the best offers from Bandhan Bank - 'A bank that cares' and supports you in every financial need. 

Let's have a look at the key factors you must consider when proceeding with a personal loan:

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1. A Good Credit Score

The first and foremost thing you need to consider before taking a personal loan is a good credit score. A credit score refers to your credit history, and every bank checks this score before they give loans to their customers. In simple words, a credit score refers to your creditworthiness, and a score above 650 is usually considered good, and with a good credit score, you will face no issues in availing of any loan. So, try to maintain a good score because the higher the score, the higher the benefits. The process of availing a personal loan is smooth and easy for people with higher credit scores. 

2. Eligibility Criteria

The eligibility criteria for availing of a personal loan may vary from bank to bank. So the best thing to do is get in touch with your bank to get a complete idea about the eligibility criteria of the personal loan you want to avail. Most banks give personal loans to customers between 21 and 60 years of age, however, the maximum age may vary from bank to bank. Also, your income is the other most crucial factor in availing loans, as the bank ensures that you are capable enough to pay the monthly instalments (EMIs).

3. Additional Costs of Taking the Loan

You may not be aware that availing a personal loan comes with some additional costs, apart from the monthly EMI and instalments. As per your bank's guidelines, a minimal amount is charged as processing fees. Apart from that, you may be required to make more expenses, including late payment charges, part-payment charges, foreclosure charges etc. which are mostly levied when you do not maintain a healthy repayment track with your bank. So, before agreeing to the contract with your bank, you must ensure that you are fully aware of these additional costs and these costs do not create any financial stress for you in the future.  You must also ensure that when you have agreed to the contract with your bank, you must strictly abide by the rules and regulations mentioned in it.

4. Check the Repayment Plan Properly

Financial experts advise that you must make a proper repayment plan before signing the loan document, no matter how urgent the situation may be. This plan ensures that you repay the personal loan smoothly without facing any financial burdens. You must know the precise details about the interest rate, EMI, the repayment period, your EMI date etc., and check if it suits your financial situation. This repayment schedule will also help you plan your finances accordingly so that you never fail to pay any monthly instalments.

5. Apply for Only The Amount You Need

Once you are eligible for the loan, the bank may offer some attractive loan offers. It is always advised to take a loan for the amount you need. Also, when it comes to personal loans, the process of availing is much easier than any other loan. You may be easily impressed by the hassle-free procedure and decide to go for a higher amount. However, as per the opinion of financial experts across the industry, it is best to apply for the amount you need to avoid unnecessary financial tension you can always re-apply for another loan again whenever you need.

6. Negotiable Interest Rates

With a good credit score, you may have ample options for availing of personal loans. In such a scenario, you may get the chance to negotiate interest rates with your bank. A personal loan usually has a higher rate of interest, and therefore, negotiating a lower rate with your bank may turn out to be quite profitable for you, reducing your repayment burden.

7. Foreclosure Option

It would be helpful if you considered the foreclosure option. Suppose you get access to a large sum of money soon and would like to repay the loan early. You must check with your bank before availing of the loan if they have such a foreclosure option, as it can prove to be quite helpful for your financial stability.

Personal loans are often considered one of the most accessible options for meeting your fund requirement during financial emergencies. However, keeping the points mentioned above in mind will help you avail the loan without any hurdles, and you may instantly get rid of the financial stress.

You can avail personal loans from any bank as all the banks have personal loan offers. However, when it comes to personal loans, Bandhan bank is one of the most preferred options by the customers. As their tagline says, "The bank is for everyone", and their hassle-free loan approvals and customer services are among the best in the industry. You may look at the products they provide and choose the one that suits your requirements best. Click here for more details. 

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