As per a 2019 survey report, out of the total EMI-based financing availed, close to 57% accounted for emergencies while the remaining 43% was for aspirations.
Retail loans, such as a fast personal loan, in India, have continued to grow despite an economic slowdown. The reason for its consistent popularity is sighted to be a shift in the consumer mindset. Users are turning towards financing small-ticket and regular purchases with these unsecured loans instead of a one-time, high-value expenditure.
While individuals seek personal loans for a range of purposes, options like a fast personal loan only make availing the financing quick and hassle-free. Nevertheless, at times when the economy reels under a crisis, borrowers must take care of a few essential things before availing a personal loan.
Essential factors to check for a personal loan during a crisis
During regular circumstances, an essential factor one looks out for when availing an online personal loan is the interest rate applicable. Nevertheless, during nation-wide financial emergencies where steady income lowers, various other factors remain of essence.
a). The loan amount you seek
First, you should only consider applying when it is a good idea to avail of fast personal loan. Next, it is ideal to seek a loan amount that is easily manageable and can be repaid affordably.
The average ticket size of personal loan today stands at Rs.35,000.
A financial crisis can cause a strain on your expenses due to uncertain income flow and result in unnecessary monetary burden if not planned properly. Therefore, decide on the loan amount that is easily payable. Financing of up to Rs.25 lakh is available for borrows with the right eligibility.
b). Your eligibility for a personal loan
Stress on your income during a crisis means stricter borrowing capacity. It is, thus, wise to consider your ability to avail loans before applying for the advance. These can include your –
- Monthly income as per the city you reside in.
- Credit score.
An individual working with a reputed employer and earning a high monthly salary is likely to be considered by lenders for a personal loan. Also, a high credit score means you stand as a trusted borrower with a steady repayment history.
You must also fulfil other personal loan eligibility criteria before applying to improve your chances of quick approval.
c). Tenor consideration
Choice of the tenor is another critical decision to make. A short tenor can allow you to unburden yourself of the repayment liability in a smaller duration. Contrarily, a longer tenor allows you more affordable EMIs to address your financial concerns as per the convenience and availability of funds.
A situation of crisis can further call for more adjustments to your repayments than ever. It is, thus, ideal to look for a personal loan that comes with a long tenor so that you can choose your repayment term suitably. Some of the renowned lenders in the market provide a fast personal loan with a tenor of up to 60 months to make repayment convenient and affordable.
d). Consider your repayment capacity
Your repayment capacity has a significant role to play when availing advances amidst financial uncertainty. Decide on the EMIs that you pay towards your loan liability, which must be an amount that is easy to afford along with other fixed expenditures. The choice of a suitable EMI, thus, turns out to be one among the various simple ways to manage debt. You can arrive at a suitable fixed financial obligation with the help of a personal loan calculator.
Lenders like Bajaj Finserv provide these useful financial tools for free, to help you make an informed decision regarding your personal loan EMIs.
They also bring pre-approved offers that help you save time when availing of finance through a hassle-free process. You can avail of these offers of several financial products, including personal loans, business loans, credit cards, and more. Provide only essential information to check your pre-approved offer.
After you have considered the aforementioned factors, apply for your fast personal loan through a hassle-free online procedure. Keep necessary documents handy for hassle-free processing and receive funding to address your financial requirements with ease.