Personal Loan Tenure – Personal loans are loans, which do not require any type of security, as an alternative, lenders approve unsecured loans based on the borrower’s credit standing. Examples of unsecured loans could be personal use, for further studies. Personal loans are uncomplicated to acquire since there is a minimum of paperwork and guarantor or a security is not asked for.
Improve your chances of getting approved for the personal loan?
NBFC personal loan have simple terms and conditions and short disbursal time. The loan amount gets credited to your bank account within a day or two.
Your loan application is liable to get rejected if the eligibility criteria are not fulfilled.
Here are 5 Easy Tips to choose a personal loan tenure:
1. Perk up your CIBIL Score
Your CIBIL score above 750 is the best for getting the sanction for unsecured loans. Improve your CIBIL score if it is low by clearing your credit card bills within the due date.
2. Repayment tenure
Your repayment term on your loan influences the EMI amount and the entire interest payable. Understand the charges involved in the loan. Use a combination of various tenure options with the proposed loan amount to calculate the interest. You don’t have to take a loan, which keeps you paying EMI for many years.
The longer the tenure lower the EMIs, while the shorter tenure attracts higher EMIs. a
Deciding on the right personal loan tenure is important as it will facilitate you to save some extra amount.
Before you take a loan, deliberate and arrive at a figure of the EMI you can afford. Ensure yourself that you will be able to service the repayments without attracting any penal interest.
To find your assessed EMI is easy when you use an EMI calculator. A personal loan EMI calculator takes into account details of the loan amount, its tenure, the interest rate, and the fees for processing. These values to give you an idea of the amount that will get debited as an EMI from your account every month as a repayment of your personal loan.
3. Apply for the right loan amount
A low-interest personal loan eligibility calculator would update you on the correct loan amount you are eligible to apply, for on the basis of your income, current debts, and other aspects. If you are used to switching jobs often, the chances of the loan getting rejected is more.
Before signing up for a loan, it’s vital to evaluate loan products offered by various banks and financial institutions by studying the offer.
4. Documents to be provided
Submit sufficient identity proofs and updated bank balance statements to be eligible for getting these loans. Providing the latest salary slips and employee ID card is a must for the salaried customers. Self-employed applicants have to submit income tax returns.
5. Look for Repayment Flexibility
Personal loans are marketed with complete or partial pre-payment charges. That indicates that repayment off the balance loan amount (before the end of the tenure) attracts a small penalty. Some NBFCs wave the foreclosure fees which facilitates you in freeing yourself from the loan and interest burden.
Conclusion
The sum you are entitled to borrow is at the moneylender’s acumen. However, most NBFCs limit a personal loan at Rs. 25 lakh. This personal loan maximum term is of 60 months.
These days, to get the lowest interest rate personal loan from the money market is easy, however austere financial restraint should adhere. This would not only protect you from your creditworthiness but also safeguard your personal finance.
In addition to the above, the other points that need consideration are the penalty levied by the NBFC on late payment of EMI, the reputation of the NBFC that you are borrowing from, and the customer service of the NBFC, and the personal loan tenure. Whatever decision you take, ensure that you keep your financial goals and abilities in mind.
Read Also: Things to Consider While Choosing Personal Loan Tenure
