You’ve been scouring the internet for online loans, and zero down on availing a personal loan from a financial institution. However, a simple google search for personal loans online will give you plenty of results to pick from. But you must also be aware of your own borrowing limitations and your prior credit history before you decide upon any specific option. There are situations when you know you have a sub-prime credit score but still need a personal loan with bad CIBIL. Similarly, there are instances when people need a personal loan without income proof. You may approach a loan agent to help you in such situations this option is mired with issues associated with personal loan DSA route. Many private personal loan providers now provide you credit for such specific circumstances as well.
Online Loans Options
Today if you want personal loans, there are plenty of lenders offering competitive interest rates. You can choose both personal loans online or go the traditional way. The new age consumer lending platforms such as CrediFiable, give you a completely hassle-free experience of getting online loans. You can totally skip the long queues and say good-bye to waiting for your loan approval. You can get instant personal loan decision in just 5 minutes by filling a simple application form and uploading a few documents. Personal loans online have simplified the entire loan procedure and you can give personal loan DSA a complete miss!
Be Vary of These Points Whether You opt for Personal Loans Online or Offline
Whether you want to get personal loans online or through offline mode, you must be aware of the mistakes you can make while taking one. Knowledge is the King!
1. Doing Only Limited Research Around Online Loans
While this is a common mistake for both the modes of getting a loan, it is especially relevant when you take personal loans online. Like for almost everything else, most of us would Google our loan and easily settle for one of the top-5 results. While most of the top results are trustworthy, they may not offer you best terms. Go through the fine prints and then choose the option most suitable to you.
2. Know Why You Need Personal Loans Online
This again is applicable to all modes of borrowing. You must know why you really need to borrow money. Taking online loans just for the sake of credit availability is no wise financial move. After all, you do pay an interest on the borrowed money. There are many situations when you need financial assistance such as educational expense, medical emergency or family obligations. But taking every other lifestyle extension on EMI is against the financial wisdom.
3. Seeking Personal Loan with Bad CIBIL
Many-a-times you end up developing a bad credit history for yourself. At CrediFiable, we carefully evaluate whether the bad CIBIL was more circumstantial or intentional. We also carry out a holistic risk appraisal based on several parameters apart from your credit score. Hence, we can give you competition interest rates even if you apply with us for a personal loan with bad CIBIL score but is not totally trashy. To give you a range, we can look at cases where your score is less than 700 but not for sub 600 score. But not every lender has the capability to offer this. Many-a-times they will charge you an exorbitant interest rate. Thus, unless you absolutely want the money, avoid taking a personal loan with bad CIBIL. Instead, you should try to build a good CIBIL score by just taking a credit card or a secured loan.
4. Getting Online Loans is Easy. But don’t borrow beyond your repayment capacity
Technology has made access to online loans a lot simpler. But this does not mean that you should take personal loans online for an amount which is way beyond your repayment capacity. Over-borrowing is the last thing that you need in times of your financial distress.
Say, you are not opting for the easy personal loans online but are in a financial distress. For example, you have lost your job and you approach a private money lender who agrees to grant you a personal loan without income proof. But still you must only borrow for the necessary expenses and nothing extra so that you can repay comfortably.
5. Selecting a Longer Tenure for Smaller EMI Amounts
Although the idea of repaying smaller amounts seems very appealing in the beginning, it isn’t a practical approach to go about it. A longer tenure isn’t very cost-effective as any lender would charge you a higher rate of interest. Hence, it’s always better be a little aggressive and avail online loans with shorter terms, depending on your monthly repayment capacity.
6. Want Personal Loan Without Income Proof? But Avoid Approaching Too Many Lenders
You may be facing a situation where you have no proof of income such as salary slips or income tax returns. A regular loan provider will not sanction your loan application in such a scenario. This is because your source of income acts as an assurance to a lender who gives you unsecured loan. But now that you need a personal loan without income proof, you must not approach multiple lenders in a haste. Every enquiry that you make for a loan is recorded by CIBIL. Moreover, a rejection from a lender for your loan application adversely affects your CIBIL score. Hence, do proper research and find a lender who can sanction a personal loan without income proof. Do so while you have the luxury of doing so while you have a decent credit score, as very few lenders will help you avail a personal loan with bad CIBIL score.
7. Give Personal Loan DSA a Miss
Funds from anywhere during a financial distress, would be a boon. But, reaching out to a personal loan DSA certainly isn’t. A Direct Selling Agent (DSA) will never reveal the complete features of the personal loan you intend to borrow. Additionally, they will apply for a loan on your behalf with several lenders, which is a terrible way to go about fixing your credit needs. If you carefully consider the pros and cons of choosing a personal loan DSA, you will appreciate it is better to be self-reliant with the quick & easy personal loans online.