Looking to buy the coolest new
bike in the market or to upgrade your old mobile phone to the latest smart
phone, buy an AC through the hot summer or buy that dream bike you’ve always
wanted? Very often your dreams could be bigger than your wallet. Not only that,
you might not want to spend ALL your spare money on a new purchase all in one
go. Its times like this that you could consider taking a loan to bridge the gap
between your wallet and your dreams.
What to keep in mind BEFORE I
take my first loan?
Before even thinking about your first loan, you should always check
your affordability. While a loan reduces the monetary burden of your purchase,
it is also a commitment to pay an agreed sum as a monthly repayment (also
called an Equated Monthly Installment or EMI). So before you sign up for your
first loan, check what monthly repayment/ EMI amount you can comfortably pay,
after deducing your prior expenses and commitments and after keeping some savings
aside for a rainy day.
Credit Score. What's that?
When applying for a loan, the first thing anyone will check is your
Credit Score or CIBIL score. This is a 3 digit number that represents all your
past credit history and behavior. What that basically means, is that your
history of credit card payments, loans repayments etc are all recorded,
irrespective of financial partner or bank, and converted to this score. A
healthy score shows a better credibility for you. You can build a good score by
repaying all your dues on time thus become eligible for lower interest rates
each time you apply for a loan!
How do I get a Credit Score if
this is my first loan?
If you are a first time borrower and do not have a credit card, you
must consider a loan from an organization that does not require you to have a
prior borrowing record or a credit card. By being regular payments for your
first loan, you can build your own credit score. With an improved credit score,
the next time you apply for any other loan, you will get the benefit of faster
approvals and lower interest rates!
How do I choose a responsible
lender?
- While looking to take your first loan, look for a lending partner/ guide who Shares details of your loan (Monthly EMI payments, interest rate, due date etc.) up-front in a written format.
- Explains all the terms and conditions of your loan agreement in an easy, simple and transparent manner
- Gives you all your loan documents on time and quickly
- Helps build your Credit Score by reminding you about payment due dates!
Home Credit Hint: Always
look for a finance partner who can help you achieve your dreams. Select a
finance partner who can help you adjust your EMI amount to something you are
comfortable with, after taking into account your monthly expenses and savings!
Home Credit offers you the flexibility to set your EMI amount basis your
affordability and monetary comfort. Moreover, the simple and easy documentation
process from Home Credit enables your loan to be approved in less than 5
minutes!
About Author: Mr. Tomas Hrdlicka is Chief Marketing Officer of Home Credit India Finance Pvt. Ltd.
0 comments:
Post a Comment