A mobile phone has no longer remained a fashion statement and a luxury consumer product. Having a mobile phone with features like Whatsapp, Online wallets like PayTm, apps for banking, investments, food, and grocery deliveries, and apps for availing loans has become necessary. Newer models of smartphones are launched in the market every other day with the latest features. While the features may be required for day to day usage, the cost of the mobile phone may be out of your budget or something that you cannot purchase with your monthly income. Here are the Tips for How to get a personal loan for a new mobile.
In those cases, you may require some kind of financial assistance to buy a mobile phone. It may come in the form of a personal loan or you may use your credit/debit card for buying a phone.
How can you get a personal loan for buying a mobile?
There are various sources from which you can get a personal loan to buy a mobile phone. Each of these sources has its advantages and disadvantages which you should consider before applying for a loan.
Availing a personal loan from online lenders
Thanks to better use of technology, easy personal loans from private lenders are now available right on your mobile phone. These loans are extremely fast and quick and involve minimal documentation. The greatest advantage of an online personal loan is that you need not take the trouble of stepping out of your home and yet get a loan at any time that you wish.
Some of the other advantages of an online personal loan are that they are available on a lesser credit score than banks/NBFCs. So if you have a bad credit score due to any reason, you would still be able to get a personal loan from an online lender like Money View.
Also, the income and other eligibility criteria are transparent and relaxed, so that many individuals can avail a loan, no matter what the need be. And if you in a good financial position, you can pay back the loan without any penalty after a lock-in period of just 3 months.
The process of applying for a loan is also extremely easy involving just 4-5 steps which is easier for any smartphone user to follow. All you need to do is to download the app and check your eligibility in 2 mins by giving your personal details. After you know your eligibility, you could choose any loan amount and the repayment tenure according to your financial position and submit the required documents to avail the loan amount in your bank account as early as 2 hours.
Availing a personal loan from banks and NBFCs
You could also avail of a personal loan from a bank or a Non-Banking Financial company. But the process to avail a loan from a traditional source of finance may be lengthier than that involved in an online lender. You might also require some visits to the lender for submission of documents, etc.
The credit score requirement is higher than 750 to avail a loan from banks/NBFCs which may be difficult for everyone to meet. The minimum income requirement is much higher for banks and NBFCs, so it might be difficult for everyone to avail a personal loan from a bank/NBFC. Very often, preference is given to the bank’s account holders for a loan.
The only advantage of a loan from a bank is that the interest rates are lower in comparison to other lenders. But the best interest rates are available only for those customers with a perfect credit score and others who meet the minimum income criteria.
So, if you have an urgent requirement to buy a mobile phone you might not want to wait for some days just to avail of a loan. Very often individuals looking to buy the smartphone immediately after its release, which might become impossible with a bank loan considering the time required to avail the loan.
Using a credit card/debit card to buy your new mobile phone
You may think that you could also use your credit/debit card to buy your new mobile phone. Yes, you could, but there are certain issues that you might want to consider here.
When you use a debit card to make a payment, the amount is debited from your bank account immediately. So you would need to have sufficient balance in your account before attempting to pay for your new smartphone with your debit card.
You might be able to use your credit card for payment even if you do not have the amount in your account. But, depending upon your billing cycle you would get anywhere between 15-45 days to clear off this balance. If you decide to roll over the amount spent on the credit card, you would have to pay interest on that amount and any further usage of the credit card.
Credit card interest is the highest interest charged on any retail credit product in the market. The interest charged can range between 36-48% which works out higher than the interest on a personal loan.
Therefore, a personal loan may be the easiest way of financing your new mobile phone. Choose between an online lender or a traditional lender based on your need, the interest rate charged, and your credit score. But, remember, once you avail of a loan, be prompt with your repayments so that you can maintain a good credit history and credit score at all times.