5 Things to Clear Before Availing a Fullerton India Personal Loan

An unsecured credit option, a personal loan, is offered to all the borrowers without pledging any collateral or keeping any security as an asset. Its easy application process, simple eligibility criteria, and quick disbursal make it easy to get a Fullerton India personal loan.

However, there are some essential points that one must be aware of before availing of a personal loan.

Five things to clear before availing of a Fullerton India personal loan

Borrowers take a personal loan during emergencies for their business, holiday, education, or medical emergency. So, you must be aware of the necessary details about it.

Eligibility criteria

Before applying for the loan, make sure to know and check the eligibility criteria for the personal loan. It will help you in better identifying whether you should apply for the loan or not. You can also use the Fullerton India eligibility checker to see whether you are eligible for the loan or not.

Some loan eligibility criteria include:

1. The applicant must be between 21 and 60 years of age.
2. The loan is available for both self-employed and salaried individuals.
3. The applicant must have a credit score of over 700.
4. For salaried individuals working in Delhi or Mumbai, the minimum salary must be Rs 25,000.
5. For salaried individuals working in India except in Delhi or Mumbai, the minimum salary must be Rs 20,000.
6. For self-employed individuals, the minimum profit is determined by industry standards.

Credit profile

As a personal loan is unsecured; the credit score plays a major role in establishing the creditworthiness of the borrower. Usually, a credit score over 750 is considered good and has higher chances of loan approval. So, you must make sure to build and have a strong credit score.

For this, you should adopt healthy financial habits like timely repayment of EMI and credit card bills, credit utilization ratio within 30%, and maintaining a healthy credit mix. You can also check your credit history from time to time to ensure no error and rectify the same if found. 

Also Read: Struggling To Repay Loans On Time? Check Out These Smart Tips

Compare the various loan offers

With the digital age, the financial sector has agone a tremendous change. More and more players are entering the industry at competitive rates. In such a situation where the loan application and approval are done paperless and done online, check the various lenders’ various loans. You can do this by visiting their website and comparing the interest rate and loan tenure being offered to you. The loan amount, interest rate, and tenure can be used to calculate your EMI, which is the best factor to compare the various loan offers.

Based on the EMI that you can afford to pay each month after your regular expenses, you can apply for a personal loan to that lender. Also, make sure not to apply to too many lenders; it will reduce your chances of getting the loan.

You can also check if the lender has any restrictions on the usage of personal loan credit. This, too, might create a problem in the long run. 

Extra fees

For getting a personal loan approved, some lenders charge a processing fee and various other additional charges. Make sure to check for these charges before applying for a loan. One of the charges that you might also look for is the pre-closure charges; if you want to close your loan before the tenure, then whether the lender is charging something or provides free pre-closure.

Loan application and documents 

Nowadays, everything has gone digital, and the entire loan application process can be done with just a click. You can either download the lender’s app or visit their website to apply for the loan. Make sure to check the loan application process for the lender you are opting for. Avoid any lender that requires you to physically submit a pile of documents and constantly ask for more details.

Instead, you might want to choose a renowned personal loan lender like Fullerton India, which offers a paperless and simple loan application process. All you have to do is fill in the form, upload some documents and submit the application. The documents required are: 

1. Duly filled and signed application form
2. Proof of identity
3. Proof of address
4. Proof of age
5. Salary slips for the last three months (for salaried)
6. Bank statement for the previous six months
7. Income tax returns or form 16
8. Proof of Income / financial statements (for self-employed)

Conclusion

Various lenders offer a personal loan, but its criticality makes it essential to first check the above-mentioned five points before applying for the loan. These will not only ensure that your loan is approved on time, but also you can plan your repayment so that you do not miss any EMI.