What to Check Before Applying for an Urgent Personal Loan

Are Interest Rates The Only Important Figures to Consider?

No. Whilst you will need to consider the interest rate when finding an online personal loan, there are many other numbers to consider.

Look Past the Interest Rate:

Personal loans will usually have an interest rate based on your profile. Always ask for the interest rate that will be applied to you. Consider how much it will cost for processing, late payments and prepayment. You should also be informed if the figure they give is just an estimated amount.

Check Your Budget Can Handle the EMI:

For example, if you are taking out a loan of ₹50,000 over 12 months with an interest rate of 18%, your EMI would be approximately ₹4,584, meaning you would pay back a total of ₹55,008. If this would put a strain on your monthly budget, taking out a longer-term loan may be a good idea. However, this will increase the total interest owed.

Will You Be Eligible?

This will help save some time as you won’t have to apply for a loan and find out you aren’t eligible.

Income, Age & Credit Score:

Most lenders will ask for a minimum income per month, an age range and a credit score. Common requirements are a monthly income of around ₹15,000, an age of between 21 and 55 and a credit score of 650 and above.

Apply Once:

Every application for an online loan can impact your credit report. Use the eligibility tool to ensure you meet the criteria and then apply. This will keep you calm when applying for a loan in a hurry.

What Documentation Will Be Required?

Many digital lenders will now use electronic verification, so there won’t be any documentation required. However, you will need to have the details correct.

Have Your Essentials to Hand:

Having your PAN, Aadhaar, bank details, and a mobile number that is linked to your Aadhaar will help you apply for an instant online loan. Often, applications are delayed due to incorrect names/numbers.

Some Profiles May Require Extra Proof:

Some profiles will require further proof, such as bank statements. If they ask for more, don’t worry, as this is part of the verification process. Just ensure that any requests are genuine. Any genuine requests will always be made through the app or verified channel.

How Can You Spot A Genuine App?

It can be tempting to rush past this; however, taking your time will help.

Check Who They Are:

A genuine personal loan app will always tell you who their regulated partner is. They will give you details on the loan before you agree to anything. Don’t trust anyone who asks for any fees before disbursement.

Only Ask For Necessary Information:

The app shouldn’t ask for more information than needed. If there are countdown timers, unclear charges, or unclear repayment terms, then take a moment. Taking two minutes to read the terms will save you two years of regret.

What Does Fastest Instant Loan App Mean?

When searching for terms like instant loan, instant cash loans or top 10 instant loan app in India, there are many claims. Take your time to read through.

Approval ≠ Disbursement:

These are three separate steps. Even if you want an instant urgent loan (or any online instant loan), you will still need to be eligible, and the loan will be processed by their partner.

Not Recommended:

This will give you an idea of the fastest instant loan app available. However, you should compare the interest, fees, term and terms. If they claim you will get approved guaranteed, be cautious.

Conclusion

Taking an urgent personal loan can help you in a tight spot. When taking out a loan, you will know the interest rate, fees, EMI, eligibility and who the lender is.

Prefr has been created with this in mind. You can choose a term between 6-60 months and interest rates between 18-30% per annum. As long as you are eligible, you will get instant approval. Usually, it will take around 30 minutes to get your money, but it can take up to 24 hours depending on their partner. There is no paperwork required. Whatever the reason for the money, whether it is to fix something, pay a bill or for a plan you couldn’t wait, it is for you! When you are ready, take a look at our loan app, our home page or use the eligibility tool on our landing page. Take your time to decide.