Avoid These 5 Common Mistakes While Getting A Personal Loan

The road to getting a personal loan is tough without a doubt. If you are not careful, the application could be rejected along with pulling down the CIBIL score. So, what are those mistakes you could avoid while applying for an instant personal loan? 

In this short post, we are going to discuss those mistakes you should avoid. The process is simple & quick to follow. Upon following, it increases the chances of getting approval from lenders such as PaySense or Mi credit. Let’s jump to it. 

#1. The purpose of taking a personal loan

We will start with a simple mistake. A lot of time, a borrower is not clear why they want to take a loan. The lack of clarity could be one of the reasons for getting into financial trouble when one is trying to get out of it. You are not alone; many people are not sure. 

Paying a high-interest rate without any sufficient reason is a costly mistake. When the clarity is there, look for the cheapest personal loan interest rate to all-out benefits. PaySense, Indiabulls, or TATA capital could offer you a good deal. 

#2. Never sign on blank documents 

The title itself is explainable. However, let’s dive into it. Do not trust the lender blindly, even if you know the person. This might sound extreme, but it is for your own protection. You do not know where the signed document could be used. 

The best thing to tackle this situation is by obtaining knowledge about the loan application process. Get in touch with the lenders; make it clear, you will not sign any such blank documents. Then the process will be clear giving you complete information. 

#3. The credit history, credit report, and CIBIL score

There are three things here, the CIBIL score, credit report, and credit history. First, do not ignore your CIBIL score. . So, as is your CIBIL score, It will decide what kind of personal loan interest rate you will get. This is why choose the appropriate lender. 

Now, let’s focus on the credit report. Before you are applying or getting ready, do check the credit report. See if there are any mistakes in it. it could be anything from a simple spelling mistake to wrongly getting credit dues. It is one of the common mistakes borrowers make when ignoring their credit reports. 

The third is of credit history. It means when you have the loan, what bills you are paying, etc. By seeing the credit history, It tells the lenders how you have been handling your finances so far. So, if you have not missed EMIs, always pay on time, the chances are improved. 

#4. Your honesty

As we expect honesty from the lenders, the lenders too expect it from us. Do not hide any details, declare everything financially. You cannot hide anyway. However, if you do, it will hamper the chances while tarnishing your image. Avoid this mistake at any cost. 

#5. Do not pay upfront

This has happened a lot of time with many borrowers all over India. You receive a call from the lender, offering you the lowest personal loan interest rate in the market. But as a borrower, you need to pay a set fee before processing the loan. 

No matter who is the lender, how easy are the terms, do not pay it. This fact is plain and simple. No genuine lender will ask up front money. The processing fee is deducted from the loan amount itself. 

The conclusion

Hope you will avoid these mistakes when you are getting the personal loan. Lenders such as MI credit, PaySense or Lendingkart are transparent offering you a holistic guide to approach. And in the end one more mistake you should avoid, never sign the loan paper without reading it.

Read More:
1. The guide to getting cheap personal loan
2. Exploring The Two Giant Lenders For A Personal Loan