An instant personal loan might be your go-to option whenever you need funds urgently. Also, while analyzing your options between a personal loan vs credit card during an urgent need, it is always better to opt for personal loans. This is because their interest rates are much lower, and you also get a longer tenor to repay the loan as compared to the credit card outstanding, which you need to clear in a much shorter tenor.
Though various lenders offer instant personal loans, not all of them are genuine. Also, you might come across lenders whom you have hardly heard of before. Therefore, it becomes necessary for you to be careful before applying for such loans.
With the latest technologies and digital platforms available, you no longer have to take any special efforts to get an instant loan. Most lenders have apps and websites that make it easy for you to apply and submit documents online. Moreover, the online documentation verification enables them to disburse the loans without wasting any time. Despite these benefits, you must be careful about these things while applying for an instant personal loan:
Verify the authenticity of the lender
Though you need funds immediately during a financial crisis, you need not be too casual while accepting the norms of a lender. The most important thing while getting an instant loan is to check the authenticity of the lender. Some scammers might cheat you by pretending to be a genuine lender. Remember that an authentic lender asks for the processing fee in advance as it is deducted from the loan amount itself.
If the lender asks for your sensitive information via email or SMS, then you can consider it to be a red flag. Genuine lenders do not ask for any personal or financial information over digital mediums. Also, they do not send emails containing attachments and links to their customers randomly.
Know the extra charges beforehand
It is always a wise thing to know all the extra charges that you have to bear while or after taking a loan. This includes loan processing fees, interest rates, late payment fees, foreclosure charges, etc. If all these charges are not disclosed before you apply for the loan, then you might be dealing with a fraud financier.
Before approving your application, a genuine lender will verify your contact details by sending an OTP through email and SMS. Also, the booklet containing the terms and conditions of the loan will be sent in advance along with the information of all the other charges.
Moreover, a genuine lender will provide a personal loan EMI calculator to provide an idea about eligibility, interest rates, loan EMI, and other factors to their customers. Also, the loan amount will be based upon your eligibility which might also be reflected on the EMI calculator that a lender may provide via an app or website.
Once you check all these parameters and are satisfied with a lender’s credibility, you can proceed with the loan application. However, do not forget to cross-check the eligibility requirements before applying for the instant loan. One simple way to validate this would be by going through the pre-approved offers that a lender has in store for you. This is because lenders provide pre-approved offers only after confirming the eligibility of their customers.
Bajaj Finserv presents personal loans, credit card offers, medical loans and education loans through their pre-approved offers. If you are interested in knowing the offers that you can apply for, you will need to visit their website and provide your basic details like mobile number and name.