Apersonal loan provides quick access to collateral-free funds. Many lenders today also offer these loans at attractive interest rates and flexible repayment plans, making them a viable option for people facing immediate financial stress.
If you are a Lucknow resident in a similar situation, you may have considered getting a loan already. Unsure about things you should be aware of while applying for a personal loan in Lucknow? Here’s a short checklist to help you out.
The loan amount you need
Even though lenders don’t ask you the purpose of taking the loan, know your loan purpose. This saves you from borrowing more than you require and struggling with repayments later.
Additional Read: Tips to Improve Personal Loan Application
The different loan plans offered by lenders
You must know the personal loan interest rate, the repayment plans, loan tenures, and customer service offered by various lenders in the market before you choose a lending partner. This helps you narrow down lenders with competitive loan offers.
The documents required
Financial institutions approve your loan application after ensuring all the documentation is in place. And today, many lenders offer minimal documentation options too. So, note the mandatory documentation specified by your lender and ensure you have them ready. These usually include photo ID proof, salary slips, income proof, address proof, employment certificate, etc.
The personal loan eligibility criteria
Lenders usually have different eligibility criteria. So, you must know the ones specified by your lender before filling out the loan application form. Once you know the criteria, check if you meet them. This improves the chances of your application getting approved.
The charges applicable
Before applying for a loan, you must know the charges you might incur. Here’s a list of some of the key ones for you.
#1 Processing fees
Most lenders levy processing charges when you submit the loan application form. These could either be a flat fee or a small percentage of the total loan amount.
#2 Pre-payment fees
These are charges applied when you pay off the loan before the tenure, and they depend on the criteria set by the lender. While some lenders allow paying off the charges after a lock-in period, others specify pre-payment should be in multiples of the EMI.
#3 Late-payment fees
Lenders charge late payment fees if you miss out on your EMI payments if your cheque bounces or your transfer request fails. These charges vary depending on the lender.
Most leading financial institutions allow you to fill up loan applications via online and offline modes. However, if you need a quick loan, use a personal loan EMI calculator to decide on an affordable EMI value and apply online.
Additional Read: First Time Personal Loan Applicant: Things to Consider
Save this post for when you apply for an instant personal loan in Lucknow. And if you ever need a trusted lender in the meantime, you can turn to Tata Capital. We offer loans at attractive rates and flexible terms for all your needs. Can’t choose a loan offer? Use our EMI calculator and choose one whose repayments match your current budget.