Applying For a Personal Loan Online? Here’s What You Need to Know

The personal loan segment in India witnessed a year-on-year growth of 35.5% in April 2018. The primary reason for this growth is the easy availability and attractive features of personal loans online thanks to NBFCs and fintech companies.

If you are looking to avail such credits, here is a list of things that you must know:

Eligibility Criteria

To avail of a bajaj finserv personal loan from any reputed financial institution, you are required to meet the following eligibility criteria:

• Be a residing Indian citizen.
• Between the ages of 23 and 55 years.
• Be a salaried employee working with any reputed MNC, public or private sector.

Read More: A Quick Insight Into Reducing And Flat Personal Loan Interest Rates

Importance of CIBIL Score

When you apply for a personal loan online, the first thing that a lender checks while reviewing your application is your CIBIL score. Financial institutions determine the creditworthiness of an applicant with the help of their credit history. A CIBIL score of 750 or above is considered decent enough to procure a credit on favorable terms. Check free CIBIL score Now!!!

On the other hand, a comparatively lower credit score increases the risk factor for a lender, and they can reject your application for this specific reason.

No End-Usage Restriction

A personal loan comes with no such end-usage restrictions. You can use the availed loan amount to fund any of your required expenses. The common expenses that are met with such credits are here as follows –

• Wedding
• Travel
• Medical emergencies
• Higher education
• Home renovation

Interest Rates and Other Charges

Evaluating the interest rates offered by various lenders beforehand ensures that you can avail a credit with the lowest rate. Along with interest rates, there are multiple additional charges like prepayment fee, processing fee, etc. Before applying for a personal loan online ensure that you check the associated charges to reduce the total cost of a loan.

Financial institutions can offer a loan amount of up to Rs. 25 Lakh with a personal loan. Meet the required eligibility criteria to avail a high amount along with favorable terms.

Must Read: Applying For Personal Loan Online?