A personal loan is a great financial tool to seek when you have an urgent need for funds. Often, when an unexpected expense pops up, we scramble to dip into long standing savings that have been set aside for specific purposes. Many times, even this is not enough and we fall short of cash. In such situations, instead of giving up the expenditure for want of funds or making do with a compromised solution, taking a personal loan in Siliguri can give us a simple solution.
There are plenty of articles you will find about personal loan eligibility criteria and tips to get your loan but it is equally important to know what NOT to do when you are applying for one.
DON’T settle for the first loan you see
Your requirement for funds may be very urgent but even so, it is in your best interests NOT to rush headlong into this process and sign up for the first loan you find. There are a number of lenders in the marketplace, each offering their own terms and conditions and features.
Take the time to carefully go through each offering from a variety of lenders to get an understanding of the prevailing interest rates. You may be able to find a better, cheaper option simply by looking long enough.
DON’T let lender decide loan amount
For the lender, the larger your loan amount, the bigger his earnings. He is not the objective party who should decide how much loan you take. This is a decision you must take and you must do so not on basis on the maximum loan permitted by your personal loan eligibility criteria but on basis on your repayment ability.
Use online tools like EMI calculators to figure out how much outlay a particular loan amount will require from you on a monthly basis and then make an objective decision about whether you can afford that. If you can’t, then consider reducing the total loan amount.
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DON’T apply to several lenders at the same time
Comparison shopping is a critical first step in loan taking but don’t take things to the loan application stage to do your comparison between different lenders. The lender website gives you all the salient points about the loan that you need to make a comparison with other offerings. Avoid making loan applications simply to check personal loan eligibility criteria or rate of interest or possible discounts when you are searching for a loan in Siliguri.
Each loan application is followed by a check of your credit score which has a minor impact on your credit score. Multiple applications magnify this dent and affect your credit score adversely. Also, multiple loans applications make you seem like a desperate borrower and then your negotiating position is weakened with lenders.
DON’T use loans for frivolous ends
A personal loan can be used for literally anything but this doesn’t mean you actually do use it frivolously. A loan of any kind is a serious financial responsibility that you must fulfil on time for a long term until it is repaid fully. You may be in a position to repay it easily today but there is no saying how your finances may change in the coming months and whether you will have the same facility to repay then.
While this unpredictability about future need not prevent you from taking personal loans for valid expenses, it should deter you from taking on loans that are avoidable.
A personal loan is a great way to fund the extraordinary expenses that you are not prepared for. It may be a vacation long due or a medical procedure you have been putting off or a desperate refurbishing of your old home or even a big purchase of a movable asset.
The personal loan in Siliguri is a great way to get quick access to funds to tide you over a time of need. Deciding wisely when the loan is a smart move and paying attention to what you must and must not do when shopping and applying for a loan helps you make the experience a pleasant and fruitful one.
