Loan Singh Guide – 5 Personal Loan Pitfalls You Can Avoid

personal-loan-pitfalls

Introduction

Our ‘gung-ho’ attitude, towards loan application, is quite valid. When financial crisis darkens our blissful life, personal loans are our knight in shining armor. Quick processing, by digital lending platform like Loan Singh, makes it a breeze to get a personal loan. This is also the reason that personal loan is one of the most popular financial products in lending. Loan Singh’s endeavor to serve the credit starved, and salaried individuals, makes us contact eligible borrowers – who fail to get the loan approved from a traditional lender. This disapproval could be either due to blunders they commit in the previous credit or have been too lax with the previous bill/EMI payments. When you apply for a personal loan, at Loan Singh, keep in mind the pointers that we will share with you so that you don’t end up in a personal loan pitfall. Before we get to the cautious part, let us understand what a personal loan is, why is it the best option for quick funds, the eligibility at Loan Singh, and how to get a quick approval. Let’s get started!

 

What is a Personal Loan?

Personal loans are awesome. In times of financial crisis, these get things fixed. Being an unsecured credit, there is no collateral involved. So, forget about the travails of lengthy paperwork towards asset declaration, references, photocopies, etc. Now with no collateral, Loan Singh needs something else to mitigate the risk of default. That is why, we look at your credit bureau report, to assess your discipline towards past credit obligations. We look at your repayment history to see how prompt you have been with your loan EMI. So keep in mind how crucial your credit bureau report is, while applying for a personal loan with Loan Singh.

 

Why Personal Loan?

You can avail a personal loan for a number of purposes such as buying electronic gadgets, online shopping, international holiday travel, job relocation, medical expenses, home improvement, house repairs, and more. You get tax benefits for house repairs; so, a personal loan helps you save as well. Again, no collateral means you can apply for a personal loan even if you do not own any asset like home or vehicle. All you need for the loan is a stable income and a good credit bureau score. No need for a loan guarantor, as well.

Personal loan requires very less paperwork, if you apply at Loan Singh. No paperwork also means there is no need to worry about physical storage of documents.

 

Personal Loan eligibility

Remember that a personal loan is not for everyone. You need to have a stable and steady flow of income. The minimum requirement, to just be eligible for a personal loan at Loan Singh, is that you need to be an Indian citizen. You must also be at least 21 years of age. You MUST be salaried, and earning a minimum of Rs.15,000 per month.

Banks do not entertain professionals who have never availed a loan prior to a fresh credit request. This is unfair on many professionals who are currently in need of a personal loan; despite having adequate income and repayment capability.

 

Personal Loan pitfalls to be aware of

Now that you know what a personal loan is, and how beneficial it is to a salaried professional like you; let us look at some personal pitfalls which you may encounter when you are ready to avail a personal loan.

Loan EMI Promptness

Applying for a personal loan does not mean you have reached the moon. Your real test will start once you start clearing your debt. Build self-discipline to pay-off the loan EMIs on time. Set up auto debits or auto payments to never miss any EMI due-date.

Blind eye towards your credit score

Apply for a copy of your credit bureau report from time-to-time, and check for any errors. Check for frauds and identity thefts. Report them to the credit bureau, or the errors will continue to affect your score. Sometimes credit institutions are slow to update your credit profile, which can affect your chances of getting the loan approved; even if you have the income.

Ignoring your repayment capacity

Ask yourself probing questions with regards to personal loan. Do you really need it? Are you capable to pay-off the loan? If the answers, to these questions, are in affirmation; then only head to Loan Singh’s GetStarted page, and apply for an easy personal loan.

Being Credit hungry

Do not try your luck by applying for a loan at multiple credit institutions. You may feel you will get your credit approved somewhere but actually your credit score can take a beating if multiple inquiries are made by institutions to the credit bureau.

Hiding existing debts

It is not a good practice to be secretive about your debts. Some individuals provide scanned copies of their bank statements to hide past credit defaults. Remember, your credit history will be checked by Loan Singh; so, there is no point in trying to hide certain information about your defaults. Send us your latest 6 months bank statement – only in PDF format.

 

Why go with Loan Singh?

Congrats! Your pitfall dodging worked. You now know what you need to be aware of once your loan is approved. But where to get a personal loan from? Should you go to a bank, where you will be greeted with lengthy paperwork, offline process and unending delays? Or go the opposite way?

Loan Singh is here to make your personal loan availing process swift and hassle free.

You should go with Loan Singh because

Hassle free Process – It is hassle free because of no paperwork or running from one branch to another. Apply for the loan from the confines of your home; with a few clicks.

Easy EMIs – You can find out about the EMI amount you will be required to pay each month, by making use of our EMI Calculator. You can avoid the default in EMI payments by providing Loan Singh with permission to auto debit the EMI amount before the due-date.

Online security – Loan Singh’s SSL certified platform keeps your personal and financial information protected. All your transactions and documents are secure.

No prepayment penalty – At Loan Singh, you can clear a personal loan ahead of tenure and pay no prepayment penalty, unlike banks.

EMI tracking – Banks and other sources send receipts and other documentation via mail. Your personal Loan Singh dashboard allows you to track past EMI payments, pending EMIs and tenure remaining.

 

14 thoughts on “Loan Singh Guide – 5 Personal Loan Pitfalls You Can Avoid

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