A time comes in everyone’s life where a Personal Loan is needed. There comes a time when the need of money is immediate and there is no other way but to avail a personal loan. If you are in this situation, then a personal loan is the best way to go forward. One of the major advantages of a personal loan is that you do not have to have any assets to give as a collateral. You also have the freedom to use the money as you want (except illegal purposes of course).

Here we are going to tell you a few things which you need to remember if you are availing a personal loan for the first time.

Why should you go in for a personal loan?

You should go in for a personal loan when you are in immediate need of money and want it for a short term. A personal loan is disbursed quickly than other loans as there is no need of documentation when it comes to stating the purpose of the loan.

You can also go in for a personal loan when you do not have any assets to provide as collateral. In order to protect their money, the lenders will study your credit and repayment history and determine whether you are a risk or you have the financial ability to repay your loan.

You also need to keep in mind that in order to get a personal loan your CIBIL score needs to be above 750 because if it is less than that, then there are chances that your application might be rejected and in turn, it will have an adverse effect on your credit score even further.

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What is the loan amount and period of a personal loan?

A typical personal loan amount can be anything from a few thousand rupees to several lakhs. What you need to remember is that when you are applying for a personal loan, then go for the amount which you can repay within your loan tenure. If you apply for a high amount which is beyond your monthly income, then the application might be rejected. The loan tenure can range from 1-5 years.

How to choose the best loan offer?

If you want to choose the best personal loan option for yourself, then the best way to do it is by doing a thorough research of all the options you have. Once you have a fair idea about what all will you be getting from all your options, then you can go in for the best option available. The only thing which you need to keep in mind is that since a personal loan has a high rate of interest, you should go for it if only you will be able to repay the loan amount with interest on time.

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