By Justin | Published | No Comments
Manish Sara
Getting a personal loan has become more stressful. Earlier, the Reserve Bank of India decided to increase the risk weight of unsecured loans and credit cards by 25%. The Reserve Bank of India’s tightening of guidelines comes after a sudden surge in demand for personal loans in certain segments. Due to the central bank’s new directive, banks and non-banking financial companies will now have to grant personal loans at higher interest rates.
Also read: RBI asks lenders to incorporate loan processing charges, documentation fees into effective interest rate
Regulators have been concerned about the rapid growth of certain categories of unsecured loans and credit cards. So far it is just an advisory note. However, with the announcement of new regulatory measures, the RBI has shifted it from advisory to part of the regulatory framework to curb this growth. This will result in rising costs for a range of unsecured loans such as BNPL, no-cost EMIs, micro loans, etc.
In this case, borrowers must keep the following points in mind while availing a personal loan:
When making your loan request, always try to make a compelling case for why you need the loan and how you prefer to repay it. Create a well-structured application with clear goals and a repayment plan. This will positively increase your chances of getting approved.
Always remember the fact that even with the best preparation, your chances of loan approval depend on the lender. However, if you follow these steps, you can significantly improve your chances of getting this product.
——The author is the co-founder and CEO of ZET. The views expressed are personal only.
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Justin, a prolific blog writer and tech aficionado, holds a Bachelor's degree in Computer Science. Armed with a deep understanding of the digital realm, Justin's journey unfolds through the lens of technology and creative expression.With a B.Tech in Computer Science, Justin navigates the ever-evolving landscape of coding languages and emerging technologies. His blogs seamlessly blend the technical intricacies of the digital world with a touch of creativity, offering readers a unique and insightful perspective.