Do’s and Don’ts While Applying for an Instant Personal Loan

Financial needs can arise unexpectedly, and this is where instant personal loans can help with taking care of various expenses. Owing to the current digital evolution, banks offer multiple variants of credit solutions that you can apply for online. For instance, apart from getting an instant personal loan online, you can also opt for a credit line for more flexibility with regards to the fund usage. One such example is IDFC FIRST Bank’s FIRSTmoney, a smart personal loan that offers flexible repayment options, a paperless application procedure, unlimited withdrawals, and much more!

Now, before learning more about FIRSTmoney in detail, go through the dos and don’ts of applying for a personal loan to steer clear of any financial pitfalls. 

Dos and don’ts of availing a personal loan
 

Dos

• Research
  Before you decide to get an instant personal loan, be sure to thoroughly research the repayment terms, rate of interest, and other charges linked with the loan.
  
  
• Understand your repayment potential
  Assess your repayment capacity and financial situation before applying for a personal loan. Your Equated Monthly Instalment (EMI) amount must not surpass 40-50% of your monthly income.
  
  
• Check your credit score
  A high credit score enhances your chances of availing a loan at a suitable rate of interest.
  
  
• Go through the terms
  Always go through the loan agreement before signing. Doing so helps you understand the loan terms and avoid any surprises in the future.
  
  
• Select a reliable lender
  Select a reputable lender like IDFC FIRST Bank, highly known for its seamless loan processes and customer-centric approaches.

Don’ts

• Do not borrow more than required
  Over-borrowing can result in a debt trap. Borrow just the amount you require.
  
  
• Do not ignore your credit score
  A low credit score may impact your chances of availing a loan or result in higher interest rates.
  
  
• Do not avoid the fine print
  Ensure to read all terms of the loan agreement. Avoiding the fine print may result in unexpected charges.
  
  
• Do not rush the process
  Take your time to compare distinct loan offerings before making the final decision.
  
  
• Do not default on payments
  Defaulting on loan payments can hurt your credit score and future credit eligibility.

Why choose FIRSTmoney for your instant loan requirements?
 

When browsing through the plethora of instant personal loans in the market, IDFC FIRST Bank's FIRSTmoney smart loan emerges as a superior choice due to its tailor-made features and customer-friendly policies.

• One-time setup of the sanctioned limit with zero maintenance fees
  Once you have submitted your application for a FIRSTmoney loan, a credit line limit will be approved based on your eligibility. You will not be subjected to any maintenance charges on the credit line sanctioned.
  
  
• Instant approval and Quick loan disbursements into your bank account
  You can apply for​ a FIRSTmoney smart loan via a digital application process. The approval and disbursement processes are prompt and after successful documentation authentication, your FIRSTmoney credit line is sanctioned. Post this, you can start withdrawing funds instantly to cater to your financial needs.
  
  
• Multiple withdrawals within the approved limit
  FIRSTmoney grants you the convenience of unrestricted fund withdrawals. You get the freedom to make unlimited withdrawals up to the pre-approved limit, allowing you to meet your financial demands whenever necessary.
  
  
• Flexible repayments
  With FIRSTmoney, you get the flexibility to choose from distinct repayment tenures, ranging from as short as two months to as long as 60 months.
  
  
• No foreclosure fees
  FIRSTmoney has a zero-foreclosure charge policy, which means you can utilise the funds as per your requirements and pay off the entire borrowed amount without facing any additional fees.

How to apply for a FIRSTmoney Loan?
 

• Start by scanning the QR code or click on the loan option from your smartphone.
• Register using your mobile number and confirm basic/personal details to check your eligibility.
• Select the loan amount of your choice (starting from as little as Rs 5,000 up to your full credit limit) and choose flexible repayment terms.
• Link your bank account where you wish the funds to be disbursed.
• Complete the video KYC verification process with your physical PAN card.

Once your credit limit is approved, you can start using the funds as per your requirements and withdraw funds either in instalments or in one go.

To sum up
 

Being aware of the right steps and avoiding specific mistakes is key when availing an instant loan, ensuring your borrowing journey is stress-free. Options like FIRSTmoney make your financial hurdles easier to overcome, proving to be a prudent choice than regular instant smart personal loans. This is owing to its customer-friendly approach and unique features that offer a seamless loan experience.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.