These days your mobiles are bombarded with many SMS and calls to provide a fast and effortless loan but when it comes to reality, the scenario is completely different. Getting loan is a very tedious and long drawn procedure which sometimes leaves a borrower into a depressing state. But there are many ways through which one can easily make this complete procedure a hassle-free process.
So let’s understand the common problems of Loan borrowers as well as solutions to it:
Problem 1– Many loan applications get cancelled at the very first stage which leads to a lot of disappointment. In many cases bank cancels loan request due to various criteria like age, income, poor-bank verification or even proof-documents which do not satisfy their requirements.
Solution– A borrower must read all the eligibility requirements carefully and take accurate steps in order to avoid any rejection.
Problem 2– Talking about personal loans which are also termed as an unsecured loan, many banks charges a much higher rate of interest which leads to last stage rejection disappointment for borrowers.
Solution– If you are in a hurry and don’t want to pay such higher rate of interest then there are many funding institutions to help you out. Here individual borrowers and lenders come together on a common platform to take and offer loans. Such platform screens the borrowers on various parameters and allowed them to set an interest rate that they were willing to pay for the loan amount. The lenders would then connect with the borrowers and finally on a mutual agreement, the loan process takes off .
Problem 3– Perhaps, the most common problem which half of the Indians face while applying for any kind of loan. A low credit score effects your loan eligibility as these days financial institutions are strictly adhering RBI norms.
Solution– However, there are various ways through which one can easily increase their credit score. For example, avoid High usage of credit card, maintain EMI cycle of loans and avoid unsecured loans are the best ways to increase your CIBIL score.
Also Read: Know ways to increase your credit score
Problem 4– Applying a loan involves lots of paperwork, which becomes tedious for many borrowers. The bank always asks for different papers in order to re-verify everything two times before finalizing the loan. But at times it becomes hectic for individuals.
Solution– In order to make this paperwork assessment process hassle-free, always make a check-list of documents before applying for any kind of loan. Re-verify the entire documents twice before submitting it to banks.
So, In order to save yourselves from the tricky traps of banks as well as other financial institutions, go through these points as well as solutions to make loan borrowing procedure easier.