Do you need urgent funds to finance a big-ticket expense? A Personal Loan is the best funding option to cover various costs like planning a vacation, hosting a wedding, renovating a house, financing education, or handling a medical emergency. Apart from offering collateral-free loans, an easy loan app also has minimal documentation requirements to make the process as simple as possible. However, you must keep a few things in mind to have a smooth application experience. Let’s take a look.
Research Thoroughly Before Applying
When looking for a loan, you will find numerous apps offering competitive loans and offers. However, you must read the terms and conditions carefully to choose the most attractive loan plan. Research and compare the loan schemes based on their interest rates, loan amounts, repayment terms, processing charges, etc., to choose the best instant personal loan app that matches your funding needs.
Check the App’s Authenticity
Before applying for a loan through an easy loan app, ensure the app is an authentic product of your selected lending institution. Applying through an unverified loan app will waste your time and expose your data to theft and misuse. You can check an app’s authenticity by checking its ratings, reading reviews, and contacting the customer service number provided in the menu. Applying through an authentic app ensures a smooth application experience without any risk of fraud.
Apply for an Adequate Loan Amount
You must apply for a Personal Loan only after thoroughly assessing your needs and existing financial obligations. Remember that while a loan can help you achieve your short-term goals, you must repay it to the lender with interest. Although an easy loan app may offer you a higher loan amount than your requirement, resist the urgent to borrow all that you can. It will only increase your financial burden and make repayment challenging to manage. Therefore, determine the purpose of borrowing, evaluate the associated expenses, and apply for an adequate loan amount suitable to your needs.
Opt for a Loan Plan with the Lowest Interest Rate
Since Personal Loans are unsecured loans that do not provide any security to the lender, they usually have higher interest rates than secured funding options. A difference of even a small percentage point may increase or decrease your total loan cost. Therefore, you must compare the interest rates various loan apps offer to choose the best deal.
Check the Eligibility Criteria
Before finalising a loan app, check the lender’s eligibility criteria and ensure you can fulfil each condition. The eligibility conditions may include occupation, work experience, monthly income, etc. Fulfilling the required criteria ensures a smooth application experience without further requirements and clarifications. The higher your eligibility, the higher your chance of getting quick and hassle-free loan approval.
Maintain a High Credit Score
A high credit score definitely boosts your chances of getting a smooth application experience. You can get a quick Personal Loan at a competitive interest rate and desired tenure. That is because a high credit score indicates a solid repayment history, causing the app promoters to feel confident granting your loan. Therefore, try to clear all your debts and credit card bills before making a new loan application on a loan app.
Be Mindful of Additional Charges
Before settling with an app to apply for a Personal Loan, you must also consider their processing fees and other charges. These charges may significantly affect your total loan cost, and not checking them beforehand leads to unpleasant surprises midway. So, read the loan document carefully and enquire about the additional charges before finalising a loan plan.
Choose an Appropriate Loan Tenure
Most Personal Loan apps offer flexible loan terms you can choose according to your repayment capacity. Opting for the Personal Loan maximum tenure seems tempting as it minimises the EMI amount and makes repayment easily manageable. However, it is not always the best strategy. Although it makes your instalments smaller, the total interest outgo increases by the term’s end.
An easy loan app from a reputable lending company must also have an EMI Calculator. You may use this online tool to calculate EMIs for various loan terms. Based on the results, you may choose a tenure with budget-friendly EMIs that facilitate repayment without stressing your budget.
Mention All Your Income Sources
Loan app owners prefer applicants with sufficient income to support timely repayments. That is why most loan providers have minimum income requirements to accept loan applications. If you have multiple income sources apart from your mainstream, consider including them in your loan application. They will improve your loan eligibility while ensuring a smooth application experience at the app.
Keep the Required Documents Handy
Although Personal Loans have minimal documentation requirements for a loan application, you still need to provide your identity, address, job or business continuity, income proofs, and financial documents to prove your eligibility. Since an easy loan app accepts soft copies of the necessary documents uploaded online, you must keep them ready on your device to streamline the application procedure. Check the lender’s documentation requirements upfront, save their scanned copies on your device, and upload them as soon as the app demands.
Consider Your Current Financial Obligations
Before applying for a new Personal Loan, consider your current financial obligations like your existing loan EMIs, credit card bills, rent, insurance, education costs, utilities, etc. Calculate your debt-to-income (DTI) ratio by adding up all your monthly obligations and dividing them by your monthly income. If your DTI ratio is above 30-40%, you may have a hard time proving your repayment capacity. Therefore, clear your outstanding dues before applying to have a seamless application experience.
Complete the Application Accurately
Fill out the application form accurately to ensure a successful approval. An easy loan app often requires your personal, employment, and financial information to verify your details. You must provide the required information correctly without any errors or discrepancies. Any inconsistencies may lead to further enquiries and documentation requirements, making the application process less convenient.
Personal Loan apps make borrowing much easier and more convenient than ever. Hero FinCorp is an easy-to-operate loan app that has a streamlined loan procedure. The platform grants swift loans with instant approvals at competitive interest rates and flexible repayment options.
