The Questions To Ask Yourself Before You Apply For A Loan

Most of us need some extra cash at some stage of our life; be it for education or to buy a car or to give the house the much needed renovation. In such situations, people can opt for personal loans as it is known to be the most straightforward way to borrow funds.

While people can choose to approach a bank for a instant personal loan, the chances of rejection are more if you do not have a good credit score. This is when peer to peer lending platforms come to the aid of borrowers. LenDenClub is one such online lending platform that bridges the gap between the borrowers and private lenders for personal loans.

Before one applies for a personal loan, there are questions that one needs to ask themselves. Let us have a look at what they are.

How much money do you need?

If you have a good idea, you should also have a fair idea on how much you would need to implement the same. Most of the private lenders might have a ceiling on the loan amount when it comes to personal loans. If you need a bigger amount, then you might as well have to apply for a secured loan.

Can you afford to repay the loan amount in full?

Many a times, people do apply for a personal loan without proper planning of their finances. Hence, it is better to check as to how much one can spare from their monthly income towards the repayment of loan. This helps in planning the EMIs and the tenure of the loan once approved.

The rate of interest one has to pay

Before applying for a personal loan, it is also important to know the rate of interests offered. When you apply on P2P lending sites, the rate of interest depends on various factors but it would be less when compared to the interest rates offered by banks.

The tenure you need to borrow the loan for?

Once you have planned your finances and have decided to apply for a loan, you also need to decide well before on the tenure of the loan. The longer the tenure, the lower your monthly installment would be. But this might also affect the rate of interest.

So, the next time you need some extra funds, take a wise step by applying for a loan from P2P lending companies like LenDenClub.