To meet various monetary demands of an individual, financial institutions have curated low-value financing options. One such example is the Rs. 2 lakh loans that come with a competitive interest rate, no end-use restrictions, and repayment flexibility.
Moreover, this financial product’s demand is also due to its east-to-meet eligibility parameters, minimal documentation, and online application process.
The process to Apply for an Rs. 2 Lakh Personal Loan
Individuals can keep the following steps in mind to avail of an Rs. 2 lakh loan:
Step 1: One needs to visit the online portal of their preferred lender and navigate to the personal loan application option.
Step 2: After that, individuals need to fill up this form with both personal and professional details of an applicant.
Step 4: Following that, applicants must submit relevant documents for verification purposes. Once completed, a financial institution representative will contact them to discuss the loan amount.
Remember, even in the case of simple unsecured loans, lenders assess certain parameters of applicants before offering repayment terms and interest rates. Therefore, no matter whether you are looking for a high-value or a small-ticket loan, be aware of the factors that can affect your personal loan interest rate.
Apart from the rate of interest, there are some additional aspects of this credit facility one should pay attention to.
Factors to consider before availing average-ticket size personal loans
The easy access to substantial funds and no-collateral requirement features of personal loans make it the most sought-after credit facility among borrowers. On top of that, with its no end-use restrictions feature, one gets to make use of the acquired sum to meet any kind of financial requirement.
These facilities can easily entice anyone to lean towards this credit facility during a financial emergency. However, regardless of whether one opts for an Rs. 2 lakh Personal loan or even a smaller amount than that, there are some specific factors one must keep in mind.
- Associated charges
Other than interest costs, a personal loan also attracts several other expenses. While comparing different lenders, assessing these essential personal loan charges is also necessary to know the actual cost of a loan. Also, based on these charges, one can plan their repayment better.
For instance, a person who plans to foreclose a personal loan before the end of the repayment tenor needs to know whether he/she will have to bear any penalty charges for this.
- Repayment tenor
The equated monthly installment amount gets influenced by both the rate of interest and loan tenor. Even though personal loan interest rates are slightly on the higher side, by choosing the right tenor, one can still make the EMI affordable.
While most borrowers prefer going for a longer tenor as it reduces the monthly installment amount, they should also consider the interest outgo that gets increased with that. In this regard, using an EMI calculator to assess the overall interest rate costs for varying tenors is recommended.
- Eligibility and documentation
Because of its unsecured nature, the eligibility parameters can be slightly stringent for some. In order to get prompt approval from the lender, it is advisable to keep an impressive credit profile. Note that having a CIBIL score of 750 or above automatically increases the chances of getting a personal loan. Other than that, there are certain lender-specific requirements applicants should meet before applying for the loan.
Similarly, individuals should keep specific documents handy to make the loan application process easier. This list of papers includes KYC documents, income proof, and bank account statements.
Note that meeting the required eligibility parameters and having proper documents also help to get flexible repayment terms and attractive rates.
Such borrowers also get several benefits and access to pre-approved offers provided by leading NBFCs like Bajaj Finserv. These offers are available on multiple financial products such as business loans, personal loans, credit cards, etc. To make the most of them, individuals should check their pre-approved offers by entering their names and contact details.
Besides keeping these aspects in mind, dedicate some time to creating a solid repayment strategy for your Rs.2 lakh loan. This will automatically help you manage your other financial liabilities along with the EMI obligations.