5 Mistakes to Avoid While Taking a Personal Loan

A personal loan comes in handy to finance a range of goals. Fintech companies offer short-term personal loans to help meet even small-ticket expenses or urgent cash requirements like medical emergencies and unpaid taxes. However, to successfully apply for a loan, you need to avoid certain mistakes. You shouldn't make the below mentioned mistakes when taking a personal loan.

Not Considering the Amount You Need to Borrow

Consider the purpose of taking the personal loan. If you need to pay a mobile bill, a microloan starting from ₹1,000 may help. On the other hand, for holiday expenses, medical expenses or buying a 2/4-wheeler, you may need a personal loan offered up to ₹4,00,000. So, choose a suitable loan amount as per your fund requirement and one that you can repay. Thankfully, you can get these loans on the online app of a top fintech company. 

Disregarding Your Repayment Capacity

Consider your repayment capacity to choose a suitable loan tenure. But if you can't assess it, a fintech company can help you. You can choose from different tenures for different loan amounts and eligibility on its mobile loan app. The time needed to repay a particular loan is determined based on the borrower's monthly salary. For instance, one who receives a minimum monthly wage of ₹50,000 is expected to repay a loan of ₹1,25,000-₹4,00,000 in 540 days. Accordingly, you can easily choose a suitable term for a loan amount per your eligible monthly salary.

Providing Wrong Details

If you have downloaded a fintech company's online loan app, you can create your profile on it using your social media account details. You may also need to provide your name, date of birth, mobile number, email ID, city, pin code, educational qualifications, etc. Ensure to provide all the details correctly to help the lender know you as a customer without fraudulent intentions.

Not Submitting Genuine Documents

Some fintech companies don't ask for too many documents when you apply for a personal loan. Also, no paperwork is needed as you can simply upload them on the lender's mobile loan app. However, ensure that whatever documents you submit are authentic. These may include your ID proof, address proof and some other documents. Uploading genuine documents will favour a seamless verification process and establish that you're KYC compliant. This helps boost the chances of a loan's quick approval.

Not Checking the Repayment Modes

It's essential to check the available payment modes to repay the borrowed loan. Then you can use any hassle-free, quick payment modes offered by the lender. Some fintech companies allow you to pay the EMIs via IMPS or NEFT and provide their account details, including the IFSC code. So, you can easily avoid the hassle of cash payments and use any of these modes to pay your EMIs. 

Simply download a reputed fintech company's online loan app on your Android or iOS device. Then go ahead and apply for an instant loan of the desired amount depending on your cash requirements.