Question: What Should I Say My Personal Loan Is For?

Is it smart to get a personal loan?

Here are common reasons to take out a personal loan: Consolidate high-interest debt: Taking a personal loan is one way to consolidate high-interest debt, such as credit card debt, into a single payment.

Ideally, the loan has a lower interest rate than your existing debt and allows you to pay it off faster..

Which bank is best for personal loan?

Comparison of Best Personal Loan Providers in IndiaName of the LenderLoan AmountInterest Rate (p.a.)State Bank of India (SBI)Up to Rs. 20 lakh.9.60% onwardsHDFC BankUp to Rs. 40 lakh.10.75% onwardsICICI BankUp to Rs. 20 lakh.11.25% onwardsAxis BankUp to Rs. 15 lakh.12% onwards4 more rows•Nov 19, 2020

What is the best reason to give when applying for a personal loan?

One of the best reasons to get a personal loan is to consolidate other existing debts. Let’s say you have a few existing debts to your name—student loans, credit card debt, etc. —and are having trouble making payments. A debt consolidation loan is a type of personal loan that can yield two core benefits.

Is it hard to get approved for a personal loan?

Getting a personal loan can be easy if you meet all the lender’s requirements and are flexible with what interest rate you’ll pay. Understanding what you need to be able to qualify for a personal loan will save you some time and energy in getting approved.

Is it easy to get a personal loan from a credit union?

Wait for approval. It’s not too hard to get a personal loan from a credit union, as long as you meet their qualifications. However, you shouldn’t entirely rule out banks and online lenders. Many of them have enticing offers for personal loans as well.

What can a personal loan be used for?

A personal loan is a form of credit that can help you make a big purchase or consolidate high-interest debts. Because personal loans typically have lower interest rates than credit cards, they can be used to consolidate multiple credit card debts into a single, lower-cost monthly payment.

What is a good excuse to borrow money?

If you’ve got family that can afford to foot the bill, school is a very good excuse to borrow money. Anyone can fall ill at any time or have an accident that lands them in the hospital. Without health insurance, hospital bills and medication can easily break the bank and put you into debt.

Does a personal loan hurt your credit?

A personal loan is an installment loan so debt on that loan won’t hurt your credit score as much as debt on a credit card that’s almost to its limit, thereby making available credit more accessible. A personal loan can also help by creating a more varied mix of credit types. A personal loan can decrease debt more …

Can you pay off a personal loan early?

Few lenders still charge a fee for paying off your loan early, called a prepayment fee. These fees ensure the lender makes money off your loan, even if you save on interest by repaying early.

How can I get a low interest personal loan?

9 Ways to Improve Your Chances of Getting a Low Personal Loan Interest RateShop around.Get a co-signer.Sign up for an autopay discount.Avoid fees.Use collateral.Work with a credit union.Choose a shorter repayment period.Improve your credit score.More items…•

How do I convince someone to borrow me money?

Five Powerful Ways To Persuade People To Lend Your Business MoneyDemonstrate Profitability. Numbers talk. … Show, Don’t Tell. People love prototypes, even if they aren’t fully functional. … Sell the Vision. … Facts and Figures. … Personal Connection.

Is it a good idea to take personal loan?

One of the good things about a Personal Loan is you are not required to state the purpose of your loan. … Lower Interest Rate – Interest rate on Personal Loans can be fixed or floating. You can speak with your bank representative and opt for an interest rate which is lower as compared to your existing rate of repayment.

What are the disadvantages of a personal loan?

Cons: Despite their apparent attractiveness, personal loans do have their fair share of disadvantages. Prominent amongst them are: High interest rates: As these loans don’t need any security, they are regarded as high risk by the lenders. In order to offset their risks, these loans carry very high interest charges.

What is a nice way to ask for money?

10 Less Awkward Ways to Ask a Friend for Your Money BackFirst and foremost, ask politely. People get hung up on the idea of asking someone for money. ” … Find a way for them to work it off. … Barter for something they have that you want. … Drop a subtle reminder. … Decline certain activities. … Offer payment plan options. … Tell them you need the money urgently. … Paint them into a corner.More items…•

How do you politely borrow money?

With that in mind, here are some thoughtful ways to approach friends for a loan.Ask for Advice First, Services Second, Money Third. Money is not the only assist your friends can provide. … Put Your Friend at Ease. … Be Specific and Truthful. … Put It in Writing. … Return the Favor …

Why was my personal loan declined?

If your debt is too high, your income’s too low and your credit score’s too weak, lenders might not approve your request for a personal loan. If you’ve been denied for a loan with a lender, you may need to consider other options.

Why would a loan application be rejected?

The most common reasons for being denied credit are: Bad (or no) credit: Lenders look at your borrowing history when you apply for a loan, which is reflected in your credit scores. … Most lenders use your debt-to-income ratio to determine whether you can handle the payments upon approval of your loan.

What do I say to get a personal loan?

10 Key Questions You Should Ask Before Getting a Personal LoanWhat do I need this personal loan for? … How much do I need to borrow? … How much can I afford? … How long will I be repaying this personal loan? … What’s my credit like? … Will I need a co-signer? … What type of personal loan is best for me?More items…•

What should I look for when getting a personal loan?

5 Things To Look For When Getting A Personal LoanPersonal loan interest rates. The interest rate charged on your personal loan will make a significant difference to the lifetime cost of that debt. … Personal loan repayment flexibility. … Personal loan fees and charges. … Good customer service. … A comfortably short loan term.

What should you not say when applying for a personal loan?

Your lender should have provided you with a reason for its denial.Bad credit history. If you’ve made multiple late payments, defaulted on a loan or been in bankruptcy, a lender is unlikely to approve your loan application. … Insufficient income. … Your loan purpose. … Missing information. … Unstable employment. … Too much debt.

What does a bank look for when giving a loan?

To qualify for a loan, banks look for the “Five Cs” of credit — capacity, collateral, capital, character and conditions. If your business is lacking in any of these areas, obtaining a small business loan may prove difficult.