Lending criteria of NBFCs and financial institutions vary from loan to loan. Talking strictly about Personal Loan today market has lenders offering attractive offers on these loans.
If you choose to apply let’s know the difference between instant and traditional Personal Loans first.
Instant Personal Loan
You can easily go for Personal Loan Online. Simply check out your preferred lender’s website and fill out their application form. The form asks for personal details and then can be submitted online. The lender’s representative will get in touch with you to understand your requirement and collect relevant documentation. The basic paperwork needed can be collected from your place of convenience. Upon verification of documents loan is sanctioned to your account.
The loan offers flexible tenure to help you easily pay it off in the specified duration. There are no hidden charges and the online loan account helps you easily keep track of changes from anywhere anytime.
If you have a healthy/ good credit score of 750+ or more, you can negotiate the loan terms with your lender and get lower Interest rate on Personal Loan. Also, your lender will be more willing to trust you that you will be able to pay off the loan on time and without defaults. This will allow you to pitch for higher loan amount and affordable interest rate to fulfill your financial goals.
Traditional Personal Loan
To avail this, you might have to visit the financial institution in person a couple of times and even after the loan is sanctioned. Following age old loan processing you might be needed to provide elaborate paperwork and bear higher processing fees and other charges.
Additional Reading: Instant Personal Loans Vs Traditional Personal Loans
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.