Top 5 Mistakes to Avoid While Availing a Personal Loan in Pune

The 2nd largest city in Maharashtra, Pune is also known as the "Oxford of the East" because of the presence of several renowned educational institutions. For such reasons, this city is emerging into an “educational hub,” with a literacy rate of 86%. Though Pune is the 9th most populated city, it has also ranked 1st out of 111 cities listed in the ease of living index.

To successfully apply for a personal loan in Pune, an individual needs to meet a few significant eligibility criteria and should furnish a set of essential documents.

Before applying for a personal loan, an individual dwelling in Pune should refrain from making a few mistakes. They are –

1.    Not verifying your eligibility

An individual is subjected to meet a few essential eligibility criteria to apply for such unsecured advances. The basic criteria are –

●    An applicant should be an Indian resident.
●    They should be aged between 23 years to 55 years.
●    An individual should be employed with an MNC, private or public enterprise.

Other than qualifying in the generic eligibility criteria, a borrower should also check their CIBIL Score. CIBIL or credit score is a 3-digit expression determining an individual’s credibility. To apply for an instant personal loan, borrowers should hold a score around or above 750 for faster loan approval and to have a chance to negotiate the interest rates with the lenders.

2.    Not comparing lenders

An individual should compare financial institutions before applying with one. Offers, terms, and conditions may vary in such financial organisations which may not suffice a borrower’s requirements. By comparing the various offers extended by such NBFCs, a borrower can avail a loan at affordable personal loan interest rates. An individual should also pay heed to the lender's credibility. Applying with an unrecognised financial institution may nudge a borrower into facing potential risks.

3.    Applying for a loan more than your requirements

Borrowers should consider their requirements before availing a personal loan in Pune. Availing a higher loan only subjects an individual to repay a higher amount. Other than that, an individual should apply for a loan according to their repayment capability. As an individual fails to repay on time, not only do they become a defaulter but it also negatively influences their CIBIL score.

4.    Not checking the additional charges

One of the mistakes a borrower can make while applying for a personal loan in Pune is not checking the additional charges they may have to pay. A borrower must, therefore, check the terms and conditions document related to their personal loan in Pune. It carries detailed information regarding all or any charges applicable on the advance.

Many financial institutions include fees like processing fees, administrative fees, foreclosure charges, etc. Such charges may not be feasible for an individual in the long run. Knowing about these beforehand can also help them to manage their finances efficiently. It is thus ideal to understand the terms and conditions before signing the loan agreement.

5.    Not submitting all essential documents

Missing out on the necessary documents can increase the hassles in loan processing is one of the most common reasons behind personal loan rejections. It is, thus, ideal to keep the necessary documents handy before applying to streamline loan processing.

Applicants must, therefore, furnish all documents required for personal loan. The basic requirements include the following –

●    KYC documents such as ID proof and address proof.
●    Employee ID as proof of employment for a salaried individual.
●    Salary slips for the previous 2 months and salary account statements of the last 3 months are required for a salaried applicant. For a self-employed individual, income proof includes Income Tax Return, and other financial documents basis business turnover.

Financial institutions like Bajaj Finserv offer various borrower-friendly features wherein an applicant can avail a personal loan in Pune with ease by furnishing a few essential documents.

They also provide pre-approved offers that make financing hassle-free, convenient, and quick. These offers are available on business loans, personal loans, home loans, as well as on several other financial products. All you need to do to check your pre-approved offer is provide a few essential details like your name and contact number.

By avoiding a few mistakes, an individual can avail a high-value personal loan in Pune of up to Rs.25 lakh, sufficient to meet diverse funding requirements. Such unsecured advances are beneficial because they do not require any collateral and come with hassle-free processing as well as quick approval.
Top 5 Mistakes to Avoid While Availing a Personal Loan in Pune Top 5 Mistakes to Avoid While Availing a Personal Loan in Pune Reviewed by Bella Jonson on April 06, 2020 Rating: 5

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