6 Things to Know Before Taking a Loan from any Instant Loan AppThe innovation of instant loan apps has been a boon for the common man. Otherwise, in a fast pace life today who has the time to undergo a long procedure to avail loans. Moreover, during emergencies and financial shortages, an instant loan offers just the right support. Whoever imagined that availing of a personal loan is possible via a mobile phone and not only that the loan application can be made from your own comfort zone anywhere, anytime!
Though instant loan apps are easy to use and freely available online to download on your devices, it is important to know some important things before taking a loan from any instant loan app. Staying well-informed about personal loans before applying for them not only increases your chances of approval but also makes you aware of future risks, if any.
Here are 6 major things that you should know before using an instant loan app:
- Source of the Instant Loan App: As the instant loan app is for the public, it is openly available for download via websites and app stores. Be very cautious about the source from where you download the app. The reliable source being Google Play Store is safe to download and has many options for instant loan apps of various financial companies. Even the instant loan websites should have a secured URL starting from ‘https://’ for the borrowers to trust.
- Compare the Market Interest Rate: Analyse the interest rates available with different loan providers. The figures are clearly available on their credit portals online. There are also financial websites that list down interest rates of major financial companies in one place for ease of comparison.
- Control the Borrowing Limit: Lenders might lure borrowers with attractive personal loan offers if a large amount of loan is borrowed. However, if you need of Rs.50,000 do not go ahead with borrowing a lakh just because the promotional offer looks appealing.
- Know your CIBIL Score: A CIBIL score evaluates the creditworthiness of a borrower and gives an insight into their financial history. A low CIBIL score can lead to a loan rejection. So, try to improve your score before you apply for an instant loan to avoid any delays and rejections.
- Calculate EMI: Nowadays borrowers are lucky to have an EMI calculator freely available online. Using the EMI calculator, evaluate your EMI based upon the loan amount and tenure. Get the results within seconds. This will give clarity on the EMIs to be paid every month and accordingly you can balance your monthly budget.
- Miscellaneous Costs: Depending from lender to lender, there are different costs involved for availing of a personal loan such as GST, processing fees, prepayment cost, penalties, etc. Get clarity on any hidden costs from your lender before going ahead with instant loans.
Staying aware of the above 6 factors, you will be in a better position to avail yourself of the correct amount of instant personal loans without any discrepancies and lack of knowledge.