What Factors Should A Borrower Check While Finalizing Online Lender?
The financial crunch for everyone out there has risen with the Covid-19 pandemic. Be it in India or anywhere in the universe, many people lost their jobs. On the other hand, there was a decrement offered by the companies for sufficient business operations. In such difficult times, when banks took ample of time to process the loans, most of them turned helpless.
While some were eagerly waiting to repay the car loans, others were busy figuring out personal expenses. Everybody was figuring out one question - How do we manage?
Friends and family were of great help during these times. But then, they too had to think about their families. After the lockdown was imposed, the emergency loan process also had been unconventional. So, to meet the social-distancing needs, many opted for digital loans which were faster than we could ever think.
Handful of them goofed up while applying for digital loans in a hurry. So, here are some things one must keep in mind while finalizing an online lender:
Things to DO while applying for a Digital Loan
Check your lender
We need to be very careful with respect to everything in life. Especially, when it’s about money, we are extra specific about who we want to borrow money from. For example, we have a family member and a friend to choose from to borrow money. Irrespective of the relation, we would first think about the trustworthiness and reliability. Of course, the second point would be with whom can we have the easiest repayment terms. The same is with the lender. We should choose a lender with not only easy repayment terms but also the one who is verified by the RBI.
Go through the terms & conditions
While purchasing most of the things in our lives, we always blindly tick on “Accept” while terms & conditions pops-up. Do not repeat this mistake when it is about loan. Undoubtedly, this is where most of the people end up in a mess. There are several terms and conditions when it comes to repayment, processing fees, pre-payment charges, pre-closure charges, and other additional charges. Possibly, these terms could include an inflated interest rate if you are late in repaying your loan even by a single day. None of these charges could be too high or low. However, if that’s the case, re-read the whole print. You skip reading it and you definitely will skip the peace you have after the loan.
Compare the Interest Rates
How many of you’all have waited for the entire lockdown period to compare a couple of things with the market rate before purchasing? It’s just the same. If we can wait for other needy things, why not with loans? There could be high chances of you availing a better interest rate in the market. If you do not want to check it by stepping out, there are several websites which shall help you compare the interest rates. Probably, you would find one lender which would suit your current situation needs. Monethics is one such online lender which eases your financial stress by providing you a loan as per your need with the least interest rate.
Things to not-to-DO while applying for a Digital Loan
Avoid Applying multiple loans
By applying for multiple loans you invite a decreasing credit score. Because, we all know that the credit score gets affected the moment a bank requests your credit score. Apart from these, it can default your loan as well which in-turn affects your credit score.
Say “No” to Physical submission of documents
“Digitization” itself means submitting the documents online. However, if a lender asks you to meet and submit your documents in-person, beware of a fraudulent call. Why would you submit the documents physically when you have applied for a loan digitally?
Avoid the unofficial lenders
If the lender is not registered with RBI, opt for going with another lender; rather than choosing a lender with fancy terms and conditions. Do not share your PIN, OTP or any other personal details in case you receive a call from someone asking for the same. Such calls are purely because your IP address is tracked somewhere which collects all your personal details.
The offline to online transition has surely been disruptive in our financial crisis during Covid-19. Of course, it is easy, understandable, reliable and trustworthy. But, the technology has its own pros’ and cons. So, all we have to do is be mindful while going with the trend and choosing digitization.