Need Cash Urgently? 3 Things to Do Before Applying for a Personal Loan

Adulting isn't easy in 2025. A single event, such as a wedding, an urgent house repair, or a medical bill, can cause even the finest financial plans to collapse due to taxes, EMIs, rent, investments, and other daily costs.
Many people consider personal loans in such situations because they come with quick disbursal and manageable EMIs. On this note, it's crucial to consider all relevant factors, including processing and disbursal costs, in addition to the interest rate. 
In this blog, we'll discuss three crucial factors that you should consider before applying for a personal loan from any lender.
 

3 Things to Do Before Applying for a Personal Loan

Personal loans are a practical approach to handling unforeseen costs. However, careful planning is necessary before applying. You can limit additional expenses and select repayment arrangements that actually match your budget by looking beyond the interest rate.
Instead of pushing yourself with extremely high EMIs in an attempt to expedite the loan closing process, it is also preferable to choose an EMI amount that you can afford to pay each month. This method helps you maintain stress-free and balanced finances.
Let's look at a useful strategy that will enable you to handle this circumstance with ease:

1. Verify Your Lender

The rise of digital apps has given you many alternatives for quickly and easily getting a personal loan. When assessing these options, it is important to ensure that the lender you select is reliable and complies with all legal requirements.
The terms are usually straightforward when you borrow from respectable banks or NBFCs that are registered with the RBI.
Here’s a quick checklist to help you verify your lender before applying:
●    Valid License Number: You can check the license number of any NBFC online.
●    RBI Enrolment: Check to see if the bank or NBFC is mentioned on the Reserve Bank of India's official website.
●    Transparent Website: Clearly stated interest rates, costs, and periods of repayment are important.
●    Physical Address: A genuine lender will have an office address you can confirm.
●    Official Communication Channels: Emails from official domains and calls from verified numbers only.
●    No Upfront Payment for Loan Approval: Legitimate lenders never ask for processing fees before formal sanction.
Wondering how to find legit lenders in minutes? Get started with our instant loan app and apply for a loan with confidence!

2. Compare Rates and Calculate the Real Cost

Don't jump onto the first low-interest loan offer you find online. Make sure you compare interest rates and other charges from at least five different lending sources. Signing up with a random lender or agent may add to your out-of-pocket expenses, as they'll be adding their own markup percentage for sanctioning a loan.
Before signing, ask your lender for a complete cost sheet and look out for charges like:
●    Prepayment or foreclosure charges
●    Late payment penalties
●    Penal interest for missed EMIs
●    GST on applicable charges
●    Documentation or verification fees
💡 Skip the guesswork: With the Hero FinCorp personal loan app, you can instantly check if your lender is RBI-registered and compare only from trusted banks and NBFCs.
→ Download the personal loan app now to borrow confidently and securely! 

3. Match the Loan to Your Repayment Capacity
 

Many people opt for higher EMIs to shorten their loan term and save on interest. This could be helpful in certain situations, but it's crucial to figure out your monthly budget in advance to make sure the repayment amount is affordable.
Make sure you choose a term and EMI that fit your lifestyle by calculating costs upfront. For example, say your monthly income is ₹1,00,000. On top of that, you have the following monthly expenses:
●    Ongoing EMIs: Car loan ₹15,000
●    Education Loan: ₹10,000
●    Rent: ₹25,000
●    SIPs and Investments: ₹10,000
●    Everyday Expenses (food, groceries, etc.): ₹20,000
●    Taxes and Other Commitments: ₹8,000
That leaves only ₹12,000 for a new EMI without stretching your budget. If you take a loan with a higher EMI, you risk late payments and a hit to your credit score. Always check your actual disposable income before finalising the loan amount and tenure.
FYI:  Ideally, your total EMIs across all loans should not exceed 40% of your monthly income. So make sure you do the math before signing up for a new loan.

Conclusion 

Finding the right personal loan is all about making informed choices. Make sure you compare several offers before selecting the option that gives you true value, not just low rates.
Hero FinCorp makes borrowing easy by matching you with the best loan offers tailored to your credit score, income, and repayment profile. Our site enables you to view the entire cost up front, compare offers clearly, and select flexible tenures that fit your budget. 
So why wait? Download our app today to find the personal loan that fits your needs!

Frequently Asked Questions

1. When asking for a personal loan, how should you effectively describe your need?

Be clear about how much you need, why you need it, and show that you’ve thought through how you’ll repay it.

2. For a personal loan, which three documents are required?

Usually, you will require proof of address, proof of income (such as bank bills or pay slips), and your Aadhaar or PAN card.

3. What are the four stages of the loan process?

The usual procedure involves applying, submitting supporting papers, waiting for approval, and then receiving the funds.

4. How to get 50,000 rupees immediately?

Use a trusted loan app like Hero FinCorp, upload your basic documents, and if you’re eligible, the money can hit your account within hours.