Do not apply Personal Loans at Multiple Banks
Customers at times need loans for an emergency or they apply at 2-3 banks so that they can take from the bank whichever gives them better or quickly.
Such practice should be avoided by customers. This can lead to there loan be rejected.
Most Banks before giving Personal loan refer to CIBIL Score. If they see too many applications for an unsecured product , they think the customer is credit hungry or he has been rejected by others so why to give him loan.
So at times, by applying at two- three banks, one should check rates/emi/processing fee and disbursal time in 3-4 banks but apply or give documents to one bank only.
This will help in retaining your cibil score and your chances of loan being rejected for multiple applications is min.
If your loan get rejected at one Bank, then you should try at another bank .
If you apply through Direct sales channel of Banks- do instruct them , not to apply at multiple banks.
Also , in these days- a lot of customers apply online and with insta apps of Banks gives there approval for cibil check without them knowing that when they were just trying to check rates, there application is considered for cibil check and doing at 2-3 banks will reject them from taking a personal loan.
If you are applying for a personal loan and you don’t have any credit card or a loan before- at that time your cibil score is considered 0, and still banks can give you a personal loan, but if you apply at 2-3 banks simultaneously your cibil score will be -1 which will be not eligible for any bank for Personal loan in India.
So speak to Banks and verify
- Emi
- Rate of Interest
- Processing fee
- Prepayment Charges
- Disbursal time
Based on all above factors whatever suits you- apply at that bank only and if its approved , take from that bank and if it gets rejected, then think of applying at some other bank , rather than applying at multiple banks together.
