The pandemic had a major impact on the global economy. Many salaried individuals suffered pay cuts even as small businesses across the country bore the full brunt of the crisis, with many shutting down permanently. Thinking of availing a loan in such a scenario was only natural, and an instant personal loan that offered you complete financial assistance was even better. But does that mean you take one? Should you really take a loan during a financial crisis? Let’s find out.
When is Getting a Personal Loan a Good Idea?
You should apply for a personal loan only when you absolutely need it for something worthwhile, such as debt consolidation or for medical emergencies, etc. Avoid using it for discretionary expenses like travelling or for buying a car, home renovation, etc. If you plan on using the loan funds to pay your bills and utilities, you need to hold that thought and avail a personal loan only if you have exhausted all other financing options.
How Lenders Reacted to the Pandemic Crisis?
Due to the crisis, some lenders have increased their income and credit score requirements. However, borrowers with a good score will find it easy to qualify for the loan, but it might be difficult to get a lower interest rate on personal loans. If you have a strong credit profile and an excellent credit score, you have a better chance of availing a personal loan at affordable terms even during the pandemic.
Personal Loan Eligibility Criteria
NBFCs typically offer flexible personal loan terms compared to banks. However, the factors determining a borrower’s creditworthiness vary from one lender to another. To avail a personal loan, you need to fulfil the basic loan eligibility criteria set by the lender. For most parts, they are as follows:
- The age criteria to qualify for the loan is 21 to 60 years.
- A salaried employee must have 2-3 years of work experience to be eligible.
- Self-employed individuals must have a business vintage of at least 3 years.
- A credit score of 750 and above is a great score to be eligible for a loan at affordable interest rates.
Make sure you have all the required documents in place for smooth loan approval as you will need to submit them along with your loan application. Given below is the list of basic documents required for a personal loan.
- Documents for proof of identity such as Aadhaar/PAN card, passport, etc.
- Documents for proof of address such as Aadhaar card, passport, electricity bill, etc.
- The borrower’s bank account statements for the last six months.
- Salaried applicants need to submit bank statements and salary slips for the last three months.
- ITR (Income Tax Return) filing or Form-16.
Personal Loan Calculator
A personal loan EMI calculator is a time-saving option to get estimates of your loan EMIs online. An EMI calculator can help you compare liabilities and avail a suitable plan that fits your requirements. The basic formula to calculate your personal loan EMI is: E=P*r*(1+r)^n/((1+r)^n-1)
Where ‘E’ is EMI,
‘P’ stands for the principal loan amount,
‘r’ is the rate of interest calculated for each month,
and ‘n’ is the tenor/duration of the loan.
At Finserv MARKETS, you can access the personal loan calculator to find the approximate loan repayments that you must make every month. Once you’ve decided to avail a personal loan, you can start looking for lenders that offer the best deals. When choosing a lender, you need to check the interest rate and terms they have to offer on the loan. Apply for a personal loan by selecting the lender that offers you the lowest interest rates on a personal loan in addition to the best terms and conditions.
At Finserv MARKETS, you can apply for a Bajaj Finserv Personal Loan at affordable interest rates. Also, you get access to pre-approved offers on home loan. The eligibility criteria for a personal loan is simple with minimal documentation required. The quick online process for a personal loan with the Finserv MARKETS app makes it an ideal choice to get instant financing. Most importantly, the loan repayment terms for a Bajaj Finserv Personal Loan are quite flexible and the loan amount can be used to easily finance all kinds of requirements.