Common mistakes to avoid while applying for a loan for emergency

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Emergencies demand your attention immediately and require you to stay prepared for unplanned expenditure. To fund unplanned or urgent expenses, you can consider applying for a personal loan. Being an unsecured financing option, you can get an online personal loan in 24 hours or less when you choose a lender who has simple eligibility criteria and minimal documents required for personal loan approval.

Lenders like Bajaj Finserv offers an instant Personal Loan in case you are looking for instant funding in case of an emergency. You can apply for this personal loan online and get up to Rs.25 lakh at an affordable rate of interest for a flexible tenor ranging up to 60 months. To apply online for an emergency personal loan from Bajaj Finserv, you need to submit an online application form by filling in just a few relevant details. The company will then disburse your loan amount within 24 hours of verification.

However, while applying hastily for a loan, there are chances you could falter in a few areas which in turn could delay the loan sanction. Read on to know more about a few common mistakes to avoid when you are applying for an emergency loan:

  • Lack of proper research 

If you planning to avail of a loan, you need to conduct thorough research and find the best option according to your needs. There are various aspects to take into consideration while comparing lenders. These include interest rates, processing fees, secure fees, repayment terms, customer service, processing time, and hidden charges. Look for a lender that offers you a wide range of benefits with instant funds.

Bajaj Finserv offers you a loan of up to Rs.25 lakh for personal use at a nominal interest rate. This type of finance can be approved instantly, and you can receive disbursal within 24 hours of your document verification. This makes it twice as fast as a traditional loan in terms of processing and sanction.

Along with choosing from a comfortable tenor, you can also access all your loan information online on the customer portal—Experia. Furthermore, you can avail of the Flexi Loan facility and borrow funds from it as you need. With this facility, you get to make multiple withdrawals from your sanctioned amount and pay interest only on the used amount.

You can also choose to pay interest-only EMIs for the initial part of the tenure and prepay your loan when you have extra funds in hand. This makes managing cash flow during an emergency easier and more affordable for you.

  • Focusing only on the interest rate of the loan

Interest indeed plays a vital role when you are selecting the lender to avail a personal loan. Ignoring the other important fees and charges which have the potential to increase the cost of the loan, however, is not a good decision.

You must check all the charges like EMI bounce fees, processing charges, statement charges, annual maintenance fees, and more, as listed in the loan contract. Select a lender who offers you an affordable rate of interest on personal loan along with minimum fees and charges.

  • Ignoring repayment terms 

Whenever you are applying for a loan, you must go through the repayment terms carefully. Some lenders do not provide a flexible tenor, such as asking to repay the loan in 12 months or less. Others may have higher EMIs with added clauses on increasing interest. Read the fine print thoroughly and know the terms before signing the loan agreement—even if it takes you a little more time to do so.

  • Not checking eligibility criteria before applying

To save yourself money and time, ensure that you are eligible to apply for a personal loan before actually doing so. This helps avoid damage to your credit score if your loan application is rejected. Bajaj Finserv’s Personal Loan has simple eligibility criteria that are easy to meet and minimal documentation requirements.

Avoid these mistakes in your application and avail a Personal Loan for emergencies from Bajaj Finserv in a quick and hassle-free manner. What’s more, as an eligible customer, you can get an instant personal loan from Bajaj Finserv through a 100% digital process that requires zero paperwork, from the comfort of your home. After reviewing a pre-filled form for a pre-approved loan, you can get the funds now in just 20 minutes if you are an existing Bajaj Finserv customer. So, check your pre-approved offer today to get access to instant funds.

 

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