Hero FinCorp Personal Loan: 5 Things You Need to Know
When emergencies, big events, or large expenses sneak in at your doorstep, you need money to make them happen. In such circumstances, an online Personal Loan is the most practical way to cover the expenses while keeping your savings intact. Over the decades, Personal Loans have become quite popular, as they are easy to borrow and can be used for any legal purpose. Moreover, you don’t need to pledge any asset as collateral, provide a guarantor, or deposit security to obtain these loans. The interest rates are lower than many other finance options like credit cards.
Do you require money to cover any planned or unplanned expenses? Here, you will know the five most important things about Personal Loans.
1. Personal Loan Eligibility Conditions and Documentation Requirements
The Personal Loan eligibility conditions vary between lending institutions. The eligibility conditions and documentation requirements differ for salaried individuals and self-employed professionals. For example, salaried employees must have work experience of at least six months in the same job, while a self-employed professional must be working in the same industry for at least two years.
The lending terms may also change according to the applicant’s age group. For instance, those approaching retirement may not obtain a loan for an extended tenure. So, carefully check eligibility conditions and ensure you can fulfil them before applying. The documentation requirements also vary for both types of borrowers. While salaried employees must show a regular income each month, self-employed must show their bank account statements to ensure a solid repayment capacity.
2. Role of Credit Rating
Since an online Personal Loan is unsecured, it carries a higher risk for the lender. Therefore, most lending institutions give due importance to the applicant’s credit rating to judge their past credit behaviour. Credit bureaus calculate this 3-digit number based on an individual’s repayment history, credit utilisation ratio, DTI ratio, diversity in the credit portfolio, and overall credit behaviour. So, a high credit score projects you as a responsible borrower, making the lenders feel safe in approving your loan. Lenders also determine your loan amount, interest rate, and other terms and conditions based on your credit rating.
3. Personal Loan Usage
As their name suggests, Personal Loans are meant for your personal use. That means you can use a Personal Loan amount for any purpose you want without mentioning it to the lender. The only condition is that it should be for legal use and not for gambling, money laundering, smuggling, etc. The most common uses for a Personal Loan are as follows:
- Wedding expenses include venue, catering, decorations, photography, and outfits.
- Education expenses like admission fees, visa fees, study material, hostel accommodation, equipment like laptops, etc.
- Travel expenses like airfare, hotel accommodation, shopping, sightseeing, adventure activities, etc.
- Medical expenses like diagnosis, treatment, surgery, rehabilitation, medical equipment, physiotherapy, etc.
- Home renovation expenses like labour, materials, designers, shipping, etc.
Some needy people may also use these loans to consolidate their existing debt, invest in a start-up, purchase an expensive gadget or appliance, etc. An online Personal Loan is an excellent way to pay large expenses and repay them in easy EMIs spread across flexible loan terms.
4. Choosing the Best Loan Provider
Since you will find countless lending institutions offering Personal Loans in India, choosing the best loan provider is imperative but complicated. You need to compare loan companies based on several parameters, including the following:
- Good reputation in the financial industry
- Competitive interest rates
- Flexible repayment terms
- Ample loan amount
- No collateral requirement
- No end-use restrictions
- 100% digital loan procedure
- Simple eligibility criteria
- Minimal documentation requirements
- No paperwork or branch visits
The most suitable loan provider for Personal Loans is a lending platform that fulfils all these features and benefits. Therefore, before applying for an online Personal Loan, check the website or loan app’s authenticity to avoid identity theft or financial fraud.
5. Opting for an Adequate Repayment Tenure
Lending institutions offering Personal Loans offer flexible terms for repayment. Instead of demanding repayment within a fixed period, these lenders allow you to choose a loan tenure according to your affordability. The longer the loan term you select, the smaller will be your EMIs. The opposite happens when you opt for a shorter loan tenure. A Personal Loan EMI calculator is an excellent tool to calculate EMIs for various loan terms. Once you know your monthly commitment for your selected tenure, you can adjust the loan amount or tenure to match your monthly repayment capacity.
An EMI calculator is an online tool that calculates loan EMIs based on your loan amount, interest rate, and repayment tenure. Enter these values in the space provided and get the EMI amount and repayment schedule within a flash second. Adjust the loan tenure to decrease or increase the EMI amount if you can afford less or more to pay each month.
Steps to Apply for an Online Personal Loan
Several loan companies in India offer online Personal Loans through their website or app. Technologically advanced NBFCs support 100% digital loan procedures that take only a few minutes from application to disbursal. Follow these steps to apply for an online Personal Loan:
- Visit the lender’s website or download their online loan app on your smartphone.
- Fill in the basic details like your name, address, contact information, etc.
- Provide details about your income, employment, loan requirements, etc.
- Scan and upload the necessary documents, including the identity, address, and income proofs.
- Wait for the verification process, after which you will get a loan approval and offer.
- Accept the loan offer to initiate the disbursal procedure directly into your bank account.
Conclusion
For lending institutions, assessing the borrower’s Personal Loan eligibility and repayment capacity is the most important criteria for approving loan applications. If you fulfil their requirements, you can quickly get the required funding to cover your expenses without touching your savings. Review the loan terms and conditions carefully before applying for the best loan offer suitable to your needs.
