Noida was crowned the city with the highest GDP and per-capita income in Uttar Pradesh. In a March 2020 report, it was claimed that this city accounted for around 10% of the state’s total Gross Domestic Product. With a rise in disposable income, the propensity to avail of personal loans to fulfil requirements has also increased among residents of this region.
Development is likely to push up both the establishment and living cost, too. In such a scenario, an instant personal loan in Noida can be an easy credit option for individuals. However, one must take care not to fall victim to a few common traps or mistakes when availing such credit.
What are the mistakes to avoid in availing an instant loan in Noida?
Here are some of the most frequently occurring mistakes that you must take note of before opting for a personal loan –
Not comparing loans
More often than not, while availing of a personal loan in Noida, individuals are likely to go for referrals rather than making a comparison between multiple lenders. It is advised to shop around a little to zero in on the most suitable lender, offering the lowest rate of interest in the market.
Multiple loan applications
In case of a liquidity crunch, or immediate need of funds, one may end up applying for a loan to too many lenders. Such action would negatively affect the CIBIL score of an applicant.
When the application is processed by lenders, all the enquiries made would reflect in the credit report, and pull down the score. It can be quite detrimental to the applicant’s interest in the long run.
Not checking eligibility criteria
Lenders require an applicant to meet different eligibility criteria in terms of age, income, employment, etc. If an applicant meets all of these personal loan eligibility criteria, he/she can avail of loans at better terms.
Moreover, one also has the option of availing pre-approved offers that facilitate the application process. Noted NBFCs like Bajaj Finserv extend such offers across various credit options like business loans, personal loans, etc. You can check your pre-approved offer by submitting a few basic details.
Ignoring the fine print
Some lenders may promise a high loan amount and speedy approval during the loan application process. One needs to remain careful of such promises. The importance of going through all the terms and conditions cannot be stressed enough. An applicant must read all information regarding the relevant charges.
Not checking your CIBIL score
Your creditworthiness is determined by your CIBIL score and can increase your chances of getting a personal loan. Unless you enjoy a score of over 750, you may have to bear a significant interest rate on your credit. Thus, it is essential to check your credit score before applying.
Opting for longer repayment tenor
Borrowers are usually inclined to a longer tenor as it involves the payment of lesser monthly instalments. However, there is a flipside to it. The payable interest is significantly higher when the repayment period is longer.
Availing of a loan without any purpose
It is advisable to opt for a personal loan only when there is a distinct need for such funds. One may even acquire such an amount to consolidate an existing loan. The burden of loan repayment might just become too much later if it is taken for frivolous purposes.
No end-use restriction, minimal documentation and quick disbursal of funds make personal loan in Noida a preferred credit option, one must pay attention to these crucial factors. You can use a personal loan calculator as well to determine your monthly repayment obligation beforehand and prepare your finances better for servicing such dues.
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