HOW TO CHECK THE CREDIBILITY OF A LENDER BEFORE AVAILING A PERSONAL LOAN
A personal loan is used for personal purposes or to fulfill someone's personal desires. For instance, it can be used if you are planning for a vacation, or if you want to plan a big wedding or even, if you are planning to buy a car. It is only up to you why you are taking that loan. Some of the banks do ask you the purpose of availing a personal loan while others don't.
In the whole process of availing for a personal loan, you need to apply for the same and then, provide all the necessary documents to the bank. After the successful verification of your documents, the loan will be finally transferred to your bank account. After getting the loan, you can use the money for whatever purpose you want, and after that, you have to repay the loan to the bank or to the money lender with an interest rate on it.
The money can be paid back in the form of equated monthly installments (EMIs). Different banks offer different interest rates on different loans. So, if you want to apply for a personal loan or any other loan, you should compare and contrast different offers by different banks, the features of a loan, benefits, interest rates, extra charges and at the end, decide the one which you feel is the most comfortable. The amount of money can be calculated with the help a Personal Loan EMI Calculator. It is easy to apply for a HDFC Personal Loan as the documentation is minimal.
WHY DO YOU NEED TO FIND A TRUSTWORTHY AND A CREDIBLE MONEY LENDER?
Taking a loan is no doubt, one of the major financial decisions. Your sense of responsibility is tested as if you pay all the debts on time or not. As a borrower has to prove that he is responsible and will repay the loan on time, in the same way, the lender has to prove that he is credible as well and will provide all the money.
Some of the essentials that a money lender should possess: -
- Experience and Credibility: -
The first and the foremost trait that a money lender should possess is experience and credibility. If you are planning to apply for a loan, you should try to find as much information about the money lender as possible. You can check the testimonies from the previous customers. You need to go through the positive and the negative reviews. As a borrower, you should have as much information as possible about the money lender. - Transparency: -
There should be transparency. The money lender should be transparent and honest and he should inform you about all the necessary details of the loan. You need to assure all of this before applying for a loan, so that you do not have to face unnecessary charges or any hidden fees and costs. - Response time: -
A money lender has to be communicative. He must be able to handle all the doubts of the borrower. The lender has to respond to you so that in tough times he will be able to help you. If he will not respond to your messages or calls, then the payment of your loan and all the other things will be delayed. The two most important things in a financial relationship are - support and communication. Not only the money lender but also the borrower, should establish an excellent relationship and communication. - Takeaway: -
Before you jump into applying for a loan, you need to be sure that you are working with a credible and trustworthy lender.
CONCLUSION: -
If you want to apply for a personal loan, you just need to check the eligibility criteria and then, apply for the same. After the successful verification, the money is disbursed in your bank account. You can use the money for various purposes like for a wedding or for a vacation, etc.
