Five steps to follow before you take a loan

For business requirement, or higher studies, or footing the medical bills or housing loans, there are an array of loan categories available in the market. With lending process becoming easy and seamless, consumers are left with several options. These five simple steps will guide you to avail loan online.

By Manish Khera  
Wednesday, May 16, 2018

For business requirement, or higher studies, or footing the medical bills or housing loans, there are an array of loan categories available in the market. With lending process becoming easy and seamless, consumers are left with several options. These five simple steps will guide you to avail loan online.

Know your loan requirements well: It is essential to understand the main purpose of the loan. Write down the approximate amount of money you require and find out the type of loan and repayment tenure that may suits you the best. The lending platforms can be used as guidelines for the exact loan requirement and through machine learning, the loan requirement can be determined easily. Once you have gone through it, you can apply for a loan. For merchants, assessing the sale opportunity is the key to understand the loan requirement as many people for stocking up sales in these festival seasons take a prior loan for the marketing spend to boost their sales.

Research is a must: Do a thorough research so you can understand what kind of loan you can opt for depending on your specific requirement of the loan.  Look for a smart offer from lenders that suit your requirement. Many companies offer flexible tenure & working capital loans which are customer friendly like you have a good repayment cycle, which is flexible enough suited for you. Because repayment of the loan is extremely crucial to get a bigger loan in the future. It helps in maintaining a  good credit score for future opportunities.

Compare the interest rates for a loan One has to pay interest along with the amount of loan. It is an additional outflow of cash, you must do a thorough research of the rate of interest applied by different loan providers in the market. The interest rate helps in determining how much capital we can borrow and this helps us not to go overboard and end up over borrowing.

Apply for a loan online: Today, most of the important things are done through online. It has made our life hassle free and the results are fast. The high-end technology used by these ending platforms can give you the exact loan amount you need and the time frame you would be able to start repaying. The applications available here is a seamless process. By simply uploading all the required documents loans can be approved and you can receive your funds within few working days.

Maintain your repayment cycle: One of the key factors while availing a loan. Through machine learning and algorithms, you would be informed of the repayment cycle. It's always better to honor the timeline as most of these lending platforms use a statistical method to determine the likelihood of an individual paying back the money he or she has borrowed. It helps in maintaining the financial record and also in future for bigger loans, these records help in maintaining your credibility.

Manish Khera is founder of micro lending platform Happy Loans

 

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