Offers
Rates
V-KYC
Debit Card Related
Credit Card Related
SA Welcome Kit 
Manage Mandate(s)
Get Mini Statement
categories
Bloggers
Blog collection
Press Release
5 Points to Take Care of When Applying for a Personal Loan
Posted on Wednesday, September 23rd, 2020 | By IndusInd Bank
A personal loan is an unsecured form of credit offered by banks and other financial institutions. Factors like employment history, income level, repayment capacity, credit history, and profession are some of the parameters that are considered to decide whether you can receive a loan. People usually apply for a personal loan only when they face a financial emergency, such as unexpected expenses. Some people also apply for a personal loan when making big-ticket purchases such as a home or a car.
Things to Consider When Applying for a Personal Loan
Irrespective of the reason of applying for a personal loan, make sure that you keep certain important factors in mind to make the right decision. It is crucial that you are fully aware of the conditions of the loan, and know exactly what makes it easier to get one.
Credit Score
Your credit score is usually the first thing that a bank will check before approving a loan. This CIBIL score is based on your history of credit repayment. If you have a low credit score, the lender will either reject your loan or give you one at a high interest rate. To maintain a good CIBIL score, pay all your credit card dues and loan EMIs on time. This will help you get a personal loan at a favourable interest rate.
Processing and Pre-payment Fee
Banks typically charge a nominal percentage of the loan amount as the processing fee. Lenders will also levy a pre-payment fee to ensure that you pay the full interest rate. Check these charges and fees before you apply for a loan. At IndusInd Bank, we charge a processing fee starting at only 2.5% of your personal loan amount.
Interest Rate
Do not settle for the first bank you contact. Compare your options before you pick a lender offering the best interest rate on your personal loan. Do note that the final interest rate you are offered will depend on your profile and credit history. At IndusInd Bank, we offer competitive personal loan interest rates, starting at just 11.5%.
Repayment Plans
No one has a better idea of your repayment ability than you. Make an honest assessment of your monthly budget and if you will be able to pay your EMIs on time. You can use IndusInd Bank’s EMI Calculator online to estimate your monthly repayment amount at the link https://www.indusind.com/in/en/personal/loans/personal-loan.html
Read the Fine Print
Perhaps the most critical factor to keep in mind when applying for a personal loan is the fine print of the credit facility agreement and the Key Fact Statement. If you do not properly understand it, you may be surprised by unexpected charges and fees. Carefully read all loan-related documents; consider professional advice should you need it.
Over To You
You should have all the information youneed before applying for such a loan, so you know exactly what to expect interms of interest rate, processing fee, and repayment plans. Finally, compareyour options, and pick a bank with a good reputation, transparent policies, andprecise details on the personal loan.
At IndusInd Bank, we help you turn your dreams into reality with easy and unsecured personal loan plans. Enjoy the convenience of doorstep banking, competitive interest rates, minimal documentation, and a speedy disbursal at IndusInd Bank.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
