Posted on: 09 August, 2019

Author: Arwind Sharma

Personal loans offer quick access to cash with its easy disbursement process. They have proven to be the perfect mode of finance in situations of a medical emergency or a financial crisis. While ther... Personal loans offer quick access to cash with its easy disbursement process. They have proven to be the perfect mode of finance in situations of a medical emergency or a financial crisis. While there is much to love about personal loans, it is always recommended to keep yourself well-informed before you opt for one. Here are some personal loan questions to ask your lender. How do You Prepare for a Personal Loan Application? One of the most important personal loan questions is, how to prepare yourself for the loan acquisition process. First, keeping all the essential documents required for a personal loan ready will help you prepare for the verification process. Also, figure out the processing fees charged by the bank since that usually varies from financier to financier. What are the Personal Loan Eligibility Criteria? The first thing most lenders check before signing off on your loan is your credit score. In India, a respectable credit score would be anything above 750 points. Your present income also plays an important part in determining your approval prospects. The ticket size for the quick personal loan is also decided based on your income. What is the Rate of Interest? Another helpful tip for taking out a personal loan is to verify the interest rate being charged for the loan. Generally, personal loans come with a higher rate of interest because of the higher risk to the lender. The personal loan interest rate ranges between 13-15% of the loaned amount, so choose wisely. Does the Lender Accept Flexible EMI Payments? It can be tough to meet fixed EMI payments, especially with the constantly changing market conditions and personal expenditure patterns. So, always be on the lookout for a lender who is flexible with their EMIs. Not only will this ensure that you have a breezy loan repayment experience but also that you don’t have to pay any penalties. Is Prepayment Allowed? Prepayment occurs when you pay the loan back before the date of maturity and save money on interest payments. Obviously, this isn’t desirable for the lender so they often charge a prepayment penalty or outright deny the option of pre-payment. Verify all these details before you sign up for anything so that you don’t get charged a hefty prepayment penalty. Does the Lender Limit the Use of the Funds? In most instances, lenders don’t put down any restrictions on the use of the loan amount. But instead of taking any chances, it is always advisable to clarify this particular point with the lender. Do this before you apply for the loan since different banks have varied policies. There you have it! Carefully considering the above questions will ensure that you have a breezy personal loan acquisition process. Source: Free Articles from ArticlesFactory.com Arwind Sharma a passionate writer on finance and closely associated with financial companies. He is still busy in discovering time-efficient finance schemes.