An instant loan is an ideal option to finance your dreams as well as emergencies. An instant loan app is a fast, hassle-free and paperless way of getting easy loans. It has become easier to avail instant loans with the help of online loan apps. Due to the easy availability, you often neglect certain factors while applying for a loan.
People often make certain common mistakes while making an instant loan application. There are things that you must keep in mind while applying for an instant loan. Let us have a look at the mistakes to avoid them.
Taking a Loan without a Need
You should apply for a loan only when you need it. You should take care that you do not apply for a loan because you are getting a good offer or it is easily available on an instant loan app. Instant loans are high-interest loans and prepayment has a penalty. Thus, you should check whether you actually need a loan or borrowing against bank deposits or PPF would serve your purpose.
Applying without Checking Eligibility
Every person has different loan eligibility depending on income, Credit score, age, and other factors. You should always check your loan eligibility before applying for a loan. If you go through the factors that affect your eligibility, you can improve them and increase your loan eligibility. It would reduce the chances of your loan application from getting rejected.
Applying without Checking the Rules
You should always go through the rules and regulations of the lender before making an application. If you do not meet the personal loan eligibility criteria of the lender, you will end up wasting your time and money in the whole process. Moreover, too many applications at a time also have a negative impact on your credit score. To avoid this, you can use an instant loan app and check out your pre-approved loan offers.
Accepting the Offer without a Check
You should not accept an offer without going through the fine print. Even if you are familiar with the lender, you should read the loan documents before signing them. If you are applying for a loan through a loan app, you should accept the terms and conditions after reading them. Once you have signed the loan agreement or accepted the terms on the loan app, you cannot plead that you were ignorant of the charges and penalties.
Applying without Declaring Debts and Income
Not declaring the existing debts and loans before making a loan application is a common mistake made by applicants. While making a loan application, it is important to declare income from other sources as well. Declaring all types of income increases your repayment capacity from the lender’s point of view. It enhances the chance of approval of your loan application.
Borrowing More than you can Repay
You should borrow only the amount of loan you can repay. You might be eligible for a higher loan amount, but you should always keep in mind the unforeseen emergencies that can come in the future. The lender might not consider the cash crunch that you may face in an emergency. A loan is nothing but debt. Hence, you should borrow as per your capacity to repay.
Now that you know the mistakes that you should avoid before making an instant loan application, you can manage to avoid them and move ahead. Online loan app is useful here. You can download the Bajaj Finserv app to calculate your loan eligibility and check pre-approved offers.
Bajaj Finserv also offers pre-approved deals on business loans, instant personal loans, home loans, EMI finance, credit cards and more. Such deals help you minimize the loan formalities by making it less time-consuming.
All that you have to do is share your basic inputs such as your name and mobile number to unlock your pre-approved loan offers today.