Every first experience you have leaves you thrilled. And just before everything new you do, you are generally instructed by parents or someone elderly about how best you can do it and what are the possible Dos and Don’ts.
The similar way, there are certain things which should be kept in mind when taking a loan for the first time in your life:
- Do the comparative analysis: Even before you decide to buy a phone, you compare a lot of options and alternatives in the marketplace. This comparison strategy is essentially known as comparative analysis. When you plan to take a loan, compare offers from various banks or NBFCs that provide the same loan amount which you want. Take into account all the aspects like the interest rate, penalties on late repayments and the method of repayments. Once you have analyzed and studied all the aspects, only then can take a fair decision on the place and source of loan and apply accordingly.
- Select your loan type carefully: There are various types of loans that banks have at offer. Choosing your loan carefully is a priority and of supreme importance. Mostly, they are categorized into secured and unsecured loans.
- Choose between secured loans & unsecured loans– People often choose unsecured loans which involves no collaterals of any kind with hefty interest payments. On the other hand, people who want to reduce the total cost of repayments, go for secured loans. This loan type makes sure you keep submit something as security with the lenders.
- Consider your credit rating: The credit rating plays an important role. If your credit score is good, so will your credit ratings be, and the chances that your loan will be approved. A credit score of 700 and above is considered decent enough to fetch you loans. A good credit rating will get you loans quicker with lesser documentation and hassles.
- Make timely payments: This is another factor that just cannot be ignored. When it comes to repayment of loans, you cannot default. Making timely payments not only keeps you from paying the penalties but also shoots up your credit score. Also, the lenders are really skeptical when it comes to the borrower’s repayment patterns.
- Maintain a good relationship with your lender: Taking a loan is not the end of it. There are definitely certain instances where you would need your lender’s help in documentation. Till the tenure of the loan is existing, you should be in good terms with the lender.
Also read: e-KYC: The Catalyst of Easy & Fast Disbursal of Cash Loan
The first time doers of anything are generally referred to as amateurs. A little guidance would not harm anyone. These tips are definitely going to help you know certain things which were previously avoided.