If you are applying for personal loan it is clear that you are undergoing a financial crunch.But here are some aspects you should keep in mind if you are applying for a personal loan just to ensure that you not only avail the loan but alsothe benefits that lenders offer to their customers.

Here’s a list of some DO’s and DON’Ts you should consider while making the final decision to take a personal loan:

DO’s
1. Know your Credit Score before applying for Loan: This is the first and foremost step which customers are usually unaware of or simply ignore. Know your credit score before you apply for loan as lenders determine your creditworthiness on the basis of your credit score. A good credit score (750 and above) help lenders buildtrust on you and makes it easy for lenders to decide upon the loan amount to be approved and the interest rate on it.

2. Check various Loan offers available in the market: Since there’s a plethora of options of lenders offering loans in the market today, therefore it would be wiser on your part if you check and compare various loan offers to have the best deal. What we would suggest our customers; you should first visit your own existing bankers and lenders and know the offer, its features and the availability of loan you are looking for. If you are not satisfied, then we at Mantra, can offer you a host of options to meet your financial needs.

3. Check the interest rates: Always remember that the calculation of EMIs includes both principal and interest. Therefore, always check the interest rates offered by the lenders before applying. For your convenience we have provided a comparative chart of rate of interest offered by various lenders where you can easily compare and choose the one that suits your paying capacity. For more details you can visit www.mantrafinserv.in.

4. Look for loan tenure suitable to your repayment capacity: If we talk about loan tenure then it is the specified period for which you take loan and within which you have to repay the loan amount to your lender. Shorter the loan tenure, higher will be the EMIs but lower the interest cost. Therefore, plan for loan tenure as per your repaying capacity.

5. Check your Eligibility for the loan and the required documents: Another important step before finalizing any lender for the loan is to finding out your eligibility and the documents required for it. Checking your eligibility will help you save time as it will make it clear to you which option you should choose without much wandering. What we suggest, visitwww.mantrafinserv.in that will definitely help save your time as here we will provide you a tentative list of required documents and eligibility criteria common to most banks and NBFCs.

DON’Ts
1. Don’t apply without calculating the required credit amount: Before applying for a personal loan make sure that you have calculated well the impending expenditure and then apply accordingly.

2. Avoid applying to multiple lenders simultaneously at the same time: When you submit your application to lenders, they will put up an enquiry request to fetch your credit score from the credit bureaus to know your credit worthiness. Such enquiries initiated by the lenders are considered as hard enquiries and it severely affects your credit score. Why? Because each time when such enquiries are initiated by the lenders to the credit bureaus, it gives an impression that you are a credit hungry person and your credit score will get affected. This will reduce your loan eligibility thereby making it difficult for you to avail a loan. How would Mantra help you? At Mantra, we will first fetch your credit score. Once you get your credit score in hand, you will be in a position to decide your eligibility, the loan amount you can get and the lender you should go for.

3. Don’t take loan to fund non-essential expenses: Since there is no restriction on the end use of the amount you get in a personal loan, hence you have to be very careful about how you use it. Avoid taking a loan unless you really need to meet a financial emergency. Because remember taking loan is not just about having the funds in your account but involves a monetary commitment and the discipline to do timely repayments.

4. Don’t forget to read the Terms and Conditions: Once you have decided to go for a loan don’t forget to read all the terms and conditions before finalizing the loan. Be clear about the interest rates, the repayment schedule, the EMIs, the insurance and other charges. Ask your lender if you are not sure or unclear about any term or condition. You can also take help of a financial advisor to guide you.