An instant personal loan can be a lifesaver when you need funds quickly—whether for medical expenses, urgent travel, home repairs, or even consolidating debt. With lenders like Bajaj Finance, you can get approval within minutes and disbursal in as little as 24 hours*.
However, speed shouldn’t come at the cost of smart decision-making. Many borrowers rush into a loan without fully understanding the terms, which can lead to stress later. By knowing what to check before you apply, you can enjoy quick access to funds without hurting your finances.
Here are four important things to know before getting an instant personal loan.
1. Understand the Total Cost of Borrowing
When you’re in a hurry, it’s easy to focus only on the loan amount and monthly EMI. But the real cost of your loan includes interest rates, processing fees, and other charges.
• Why it matters: Even a small difference in the interest rate can change the total amount you repay by thousands of rupees.
• How to check:
Use the Personal Loan EMI Calculator to see your exact monthly EMI and total repayment amount before applying.
Check if there are prepayment or foreclosure charges in case you want to repay early.
Example: If you take an instant personal loan of Rs. 5 lakh at 12% p.a. for 5 years, your EMI would be around Rs. 11,122. But with a 2% higher interest rate, your total repayment could increase by over Rs. 60,000.
2. Know Your Eligibility Before Applying
Every lender has certain criteria for approving instant personal loans—like minimum income, age, work experience, and CIBIL score. Applying without checking can lead to rejection, which also lowers your credit score.
• Why it matters: A rejected application stays on your credit record, making future borrowing harder.
• Key points to note:
o Ensure your CIBIL score is 685 or above for the best chances of approval.
o Have a stable income and avoid frequent job changes before applying.
3. Choose the Right Loan Amount and Tenure
One common mistake is borrowing more than you need or choosing a tenure that makes EMIs too high to manage.
• Why it matters: Overborrowing increases your debt burden, while too short a tenure can make EMIs uncomfortably high.
• How to decide:
o First, calculate your exact need—don’t borrow extra “just in case.”
o Use the EMI calculator to balance monthly affordability with total interest cost.
o Remember, longer tenure means smaller EMIs but higher total interest; shorter tenure means higher EMIs but lower total interest.
Example: A Rs. 8 lakh instant personal loan at 12% for 3 years will have an EMI of about Rs. 26,570. Stretching the tenure to 5 years reduces the EMI to Rs. 17,800 but increases total interest paid by more than Rs. 1.5 lakh.
4. Read the Fine Print Before You Sign
When you’re in a rush, you might skip reading the terms and conditions. That’s risky. The agreement will mention important details like interest calculation method, penalties, and repayment flexibility.
• Why it matters: Understanding the fine print protects you from surprises like unexpected charges or rigid repayment terms.
• What to check:
o Late payment penalties and bounce charges.
o Prepayment or part-payment options
o How the interest is calculated (reducing balance method is better than flat rate).
Pro Tip: Even if you trust the lender, take 10–15 minutes to read everything. It can save you thousands of rupees over the loan term.
Why Preparation Pays Off
Instant personal loans are fast, but that doesn’t mean you should apply without preparation. By checking your eligibility, understanding the total cost, choosing the right tenure, and reading the fine print, you can ensure you apply for the right loan. Bajaj Finance offers instant personal loans of up to Rs. 55 lakh, with approvals in minutes and disbursal in just 24 hours* for eligible customers. The process is completely digital, and you can check your personalised loan offer online in just two steps.
Final Word
An instant personal loan is one of the easiest ways to arrange funds in a hurry—but a smart borrower looks beyond speed. Take a few minutes to check your numbers, understand your eligibility, and read the terms. That way, you’ll enjoy quick approval and peace of mind.
With Bajaj Finserv Personal Loan, you can get funds when you need them most—without paperwork, without long waits, and without compromising your financial health. Apply smart, borrow responsibly, and take control of your plans today.
*Terms and conditions apply
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