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My First Loan

At some point in your life, you will have to take a loan, and just so that you have a clear idea of what is the thing you’re getting in. We thought of listing some questions along with their answers as to what you are to experience while taking the decision about your first loan.


  • — Why should I think about a loan?

    Looking to buy the coolest new bike in the market or to upgrade your old mobile phone to the latest smart phone? Very often your dreams could be bigger than your wallet. Not only that, you might not want to spend ALL your spare money on a new purchase all in one go. Its times like this that you could consider taking a loan to bridge the gap between your wallet and your dreams.

    Home Credit Hint : Always look for a finance partner who can help you achieve your dreams.

  • — What to keep in mind BEFORE I take my first loan?

    Before even thinking about your first loan, you should always check your affordability. While a loan reduces the monetary burden of your purchase, it is also a commitment to pay an agreed sum as a monthly repayment (also called an Equated Monthly Installment or EMI). So before you sign up for your first loan, check what monthly repayment/ EMI amount you can comfortably pay, after deducing your prior expenses and commitments and after keeping some savings aside for a rainy day.

    Home Credit Hint : Select a finance partner who can help you adjust your EMI amount to something you are comfortable with, after taking into account your monthly expenses and savings! Home Credit offers you the flexibility to set your EMI amount basis your affordability and monetary comfort.

  • — Credit Score. What's that?

    When applying for a loan, the first thing anyone will check is your Credit Score or CIBIL score. This is a 3 digit number that represents all your past credit history and behavior. What that basically means, is that your history of credit card payments, loans repayments etc are all recorded, irrespective of financial partner or bank, and converted to this score. A good score means you've always paid your dues on time and are thus eligible for lower interest rates each you apply for a loan.

  • — How do I get a Credit Score if this is my first loan?

    If you are a first time borrower and do not have a credit card, you must consider a loan from an organization that does not require you to have a prior borrowing record or a credit card. By being regular payments for your first loan, you can build your own credit score. With an improved credit score, the next time you apply for any loan to any company or bank, you will get the benefit of faster approvals and lower interest rates!

  • — How do I choose a responsible lender?

    While looking to take your first loan, look for a lending partner/ guide who

    • Offers you a loan to realize your dreams irrespective of whether you have a credit card or have taken a loan in the past
    • Explains all the terms and conditions of your loan agreement in an easy, simple and transparent manner
    • Gives you all your loan documents on time
    • Gives you the benefit of a "trial period" on your loan so you can cancel it without charges in case your change your mind
    • Helps build your Credit Score by reminding you about payment due dates

    Home Credit Hint : While applying for a loan with Home Credit, you can avail a unique “Freelook Period” of 15 days to try your loan. In case you change your mind, you can cancel the loan within 15 days from signing the contract document, without any charges.