Things To Consider Before Applying For Personal Emergency Loans In India

By Author: Finway
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If you have encountered an emergency and want to cover the unexpected expenses by applying for an emergency loan in India, there are certain things to consider before applying for one. But before we jump straight on to the criteria, let us look into what an emergency loan means.

Emergency loans are unsecured loans that you can consider borrowing to meet the unexpected expenses on the rise.

Emergency loans generally get approved on short notice, with you availing of the cash within a day or two, sometimes even on the day of the loan application.

They help you cover expenses without you having to break your investments.
The credit score will determine your eligibility for loan application and approval.

Checking the credit score

Before applying for a personal emergency personal loan, make sure to check out your credit score. A credit score below 750 will hinder your loan approval process to the extent of rejection.

Pay all your bills, pending debts, or loans before you apply for an emergency loan. Consistently try to improve your credit score before applying for one.

In case you want a hassle-free evaluation of your eligibility, you can do so in fintech with ease. Not only so, but fintech will also guide you towards the amount of loan you are eligible for by evaluating all your credentials.

Don’t unnecessarily go for higher sanctioned loan amounts

Always apply for the amount of loan you require to cover the unexpected expenses. Do not increase the amount unnecessarily or fall into the trap of the lending platform.

Study well and look into the rate of interest before you apply for your emergency personal loan.

Go through a lot of different lending platform on fintech and decide the one you are most compatible with before applying for the loan.

Check out the loan providing platform

Before applying for an emergency loan in India, research the lending platform well. Consider all types of costs likely to be involved while applying for the loan.

Look into the amount of processing fee that your lender or bank is most likely to charge. Processing fees might differ from bank to bank, so consider other platforms too as, the lower the rate, the better it is for you.

Generally, the bank charges up to 1% to 2% of the processing fee. If you struggle with timely payments, don't forget to consider the late payment fee as well.

The bank or the lending platform might also have a policy regarding penalty charges on the prepayment of the loan check out, that as well. Go through the guidelines before applying for the loan.

Do you have untimely repayment history? Be careful about these things

If you have a history of untimely payments or pending debts, make sure you evaluate your capacity of repaying the personal emergency loans when time. You don't want to degrade your credit score hence think well before making the decision.

Do not become influenced easily, after all, you have to pay the amount on your own

Do not fall into the trap of your lender or the banking institutions. Most of the time, they will try to convince you to purchase add-ons along with your emergency loan in India. Avoid such situations and be firm in your decision, and don't let anything hinder it.