Are you planning to avail a personal loan? Well, it is well-known that these loans can offer quick access to cash for unexpected expenses and are often seen as a financial lifeline. Around a few months ago, I was introduced to such facilities as I was planning some expenses and was not in the mood to exhaust my savings.
These loans have undoubtedly gained an edge over other types of facilities as they are easy to avail, and if you play your cards right, you might crack the best deal.
(Tip: Always use a Personal Loan Emi Calculator before borrowing.)
5 Things Not to Do When Using a Personal Loan
1. Borrowing more than you can afford
The overall process of availing such a loan facility is relatively easy and simple. However, a crucial factor to consider here is to ensure that you borrow only what you can smoothly repay within the loan term. This is simply because unaffordable Equated Monthly Installments (EMIs) can put a heavy burden on your budget, forcing one to cut back on essentials. Therefore, it is highly advisable to create a proper budget before availing of such a facility.
2. Thinking it’s free money
Remember that an instant personal loan is a debt, not free money. Therefore, please don’t fall into the trap of using it for impulse purchases. These loans are best suited for essential expenses like urgent vehicle repairs, medical bills, or home refurbishment that increase your property value. A pro tip to consider here is that you should aim to save up first, as this avoids unnecessary debt and interest charges.
3. Ignoring the Fine Print
Loan agreements often contain crucial details beyond the interest rate. Keep in mind that you don’t only skim through them and take an overview but understand all the terms thoroughly before signing. Sometimes, there are processing fees, prepayment penalties and even late payment charges.
4. Not Comparing Terms and Conditions
Never settle for the first offer of Personal Loan Finance you receive. Getting multiple quotes from financial institutions allows you to compare rate of interest, fees, and loan terms. Also, your credit score impacts the interest rate you’ll get, so make sure you keep it intact at all times.
5. Not having a repayment plan
Having a proper repayment plan before actually availing this facility ensures you prioritize repayments and avoid missed payments. What you can do here is set Auto Pay, where automatic payments will take place in order to avoid the risk of late fees and potential damage to your credit score.
Which is the best platform to avail an instant personal loan?
If you are planning to avail yourself of such a facility, I’d like to recommend Stashfin, one of the top leading applications that is quite trending these days. Around three and a half months ago, I was planning to refurbish my workspace here in Gurugram, Haryana.
So, instead of exhausting my savings, I planned to avail this type of personal loan which was suggested to me by one of my associates. The prime reason I went for this platform is that they don’t charge any rate of interest on the loan amount. This basically means that you have to pay them back the same amount you initially borrowed from them.
The Stashfin application is available on both the App Store as well as Play Store, and one can even explore their website. Here is a step-by-step guide on how to avail loan from their app:
- Download the app from the Play Store/App Store
- Sign up using your mobile number
- Add your personal details to check your credit limit
- Complete KYC and you are good to go!
Apart from these easy steps, you also need to consider the eligibility requirements while availing a loan from Stashfin, one of the Best Instant Personal Loan Apps. They are:
- Aadhaar Card
- PAN Card
- Last six months, complete bank statements
- Indian Citizen residing in India
- Age above 18
- Current Employment proof
- Monthly salary of Rs 15,000/-
- Bank Account
- Valid Identity
- Address Proof
Conclusion
All in all, these types of financial instruments can be a valuable financial resource but keep in mind, responsible use is key. Therefore, by following the tips mentioned above, you can easily harness the power of a personal loan application to achieve your goals without affecting your financial health.