Financial emergency does not come by telling. At such a time, your personal loan application will be approved once, so you should be aware of the mistakes that could cause your personal loan application to be rejected. Let’s know some common mistakes that should not be made while applying for a personal loan:
Don’t focus on your credit score:
Banks and NBFCs check the credit score to understand the risk involved in lending money. It prefers to lend to applicants with a credit score of 750 or higher. This is because applicants with higher credit scores are less likely to default on loans. So applicants with low credit score do not get personal loan या टो मिल्ता है अवर अग्र म्लट्ला है तो उस्की बेज़ दर्ण हूटी है.
Because you will ever need a personal loan, you should keep your credit score as high as possible. Along with checking your credit score, you should also check your credit report. Many times your credit score can be lowered due to wrong information or loan fraud in your credit report. If you see such a mistake in your credit report, get it corrected immediately.
Do not contact your existing bank or NBFC
Those who wish to take a personal loan should contact the bank or NBFC in which they already have a deposit, loan or credit card account. Because many banks/NBFCs offer pre-approved personal loans to their existing customers. Because the pre-approved personal loan is given according to their credit profile, they are more likely to get it quickly.
Your ability to pay के अनुराना का अध्या का अच्छा न करना
Banks/loan institutions approve personal loan applications from applicants whose EMI/NMI ratio is not more than 50% or 55%. It may vary in all bank/loan institutions. Also, the percentage of your monthly income that you use to pay your existing EMI and the EMI of your loan, that is your EMI/NMI ratio.
Are you thinking of opting for long term option to pay short EMI? If yes then tell you that doing this will increase your debt burden because with longer term, you will have to pay more interest rate. A shorter loan tenure helps you save more interest. So before taking a loan choose the loan term according to your repayment capacity.
Applying for a loan in many banks and NBFCs in a short period of time:
The bank/NBFC takes your credit report from the credit bureau to assess your creditworthiness which is called a hard enquiry. A hard-enquiry may lower your credit score by a few points, making it less likely for you to get a personal loan. So, instead of directly applying for a loan at a bank/ NBFC, go to an online financial marketplace. Here you can easily compare many loan offers and apply for a loan. When a credit report is checked for a loan through an online financial marketplace, it is called a soft inquiry that has no impact on your credit score.
Here are some mistakes that people usually make while taking a personal loan. For information related to personal finance, visit Fin-Shastra.