Personal loans have preceded the financing demand across financing segments for their expansive utility. One of the top reasons for this sustained demand of instant money loan is its ability to meet diverse and immediate financing needs. Over the past years, the demand for personal loans has also grown remarkably among female borrowers. This is mostly fuelled by the multitude of benefits that these financing options bring.
For female borrowers, instant cash loans have provided them the much needed financial freedom to make their own choices. Many women have started their own business, financed their wedding, toured distant lands and fulfilled their aspirations using these personal loans. Most Indian lenders also offer many favourable terms on personal loans for women.
But, before you apply for the finance, you need to consider the important facets of a instant money loan in. Having proper financial knowledge is the first step towards financial freedom. Read on to discover the most important factors that you must consider before applying for the advance.
Top Things to Consider When Applying for a Personal Loan
- Your Credit score is very important
Irrespective of the borrower’s profile, credit score is a crucial assessment parameter that lenders check when going through your loan application. It reflects your creditworthiness. Credit bureaus assign you this credit score based on your past credit record.
Multiple factors combine to create your credit score. It indicatesyour overall discipline towards your credit behaviour. For the purpose of availing an instant money loan, you need to have a good credit score.Having a poor credit score can lead to loan rejection or the lender may levy high interest rates on your loan.
A loan app might approve your loan request even if you have a low credit score. That’s why, it is important to check your credit score by visiting your bureau’s website before applying for the loan.
- Eligibility and document requirements
Before applying, borrowers must also check the minimum eligibility and document requestedby the lending institution. With some lenders, the minimum eligibility criteria are eased for female borrowers, making the loan process easier. Usually, the minimum criteria revolve around the age, income, credit score and the city of residence.
You must check and confirm if you fulfil all these requirements before applying for the instant cash loans. In addition to that, you must also check that you have all the necessary documents requested by the lender. Not having the requested documents can lead to loan rejection.
- Overall loan affordability
Before applying for the loan, it is also only prudent that you check your affordability for the advance. You must check the applicable interest rate, fees, and charges on the loan. You can compare various lenders in the market to find the best rates on the loan.
Furthermore, you must also check the EMI affordability for your instant money loan as well as the total interest outgo which is affected by the loan amount and tenure selected. You can use a personal loan EMI calculator to check the overall affordability based on these factors and proceed to apply for the loan accordingly.
- Purpose of financing
An instant money loan comes with zero end-use restrictions. This means you can use the loan amount in any way you see fit. But you must give in depth thought to your purpose of applying for the loan. You should also sketch a budget and apply for the loan amount that’s absolutely needed.
This will prevent you from over borrowing or under borrowing. So, the loan amount will help you meet your urgent need without adding unnecessary burden to your repayment schedule.
- Create a suitable repayment plan
You must make a repayment plan beforehand before applying for the loan. This will help in managing your financial liabilities without putting your monthly finances in strain.
Use a loan EMI calculator to estimate your loan EMI. Adjust the loan amount and the loan tenure to reach an EMI that suitably fits into your budget. It is very important to sketch a repayment strategy. You must also consider unforeseen events like job loss or discontinuation in your income. Having a solid financial back-up or opting for loan insurance can help you manage your loan liability with ease.
Conclusion
With these crucial considerations in mind, female borrowers can safely proceed to applyfor instant money loan. Before applying for the loan, you must work on the factors related to your borrowing profile. This will improve your stand regarding the terms of loan required and help with better negotiation.
If you have already availed a loan previously, then talk to your existing lender. They may offer you better loan terms and low interest rates. The processing time as well as the documentation requirement would also be less.
As a female borrower, you must be aware about your financial rights and obligations. Making the right financial decision is very important to enjoy your freedom without getting burdened with EMI.
