A personal loan is one of the most useful financial products. The popularity is increasing in India due to easy financing options and highly flexible tenures. It is disbursed based on your credit score and does not require a collateral. This reduces the risk of losing your asset in case of a default. Borrowers simply have to tick off a few key factors like employment status or repayment capability. The fund usage is not restricted to limited activities. You can use the money for anything include re-establishing a business, structural changes in your home, grand family events or an international degree.
But you do have to choose the best personal loan for yourself. This can be slightly confusing and overwhelming due to the sea of options available. So, here’s a guide on how to pick the right one to reap maximum benefits.
1. Loan Interest Rates
Banks might approach you with interest rates as high as 14-16%. This can make the whole process quite expensive. Pick a personal loan bank that offers rates starting 10.49% onward. A lower rate reduces the EMI burden from your pockets. This makes it easier to repay the amount. Do your research carefully and get in touch with the bank experts. Check for existing offers, if any, which can further reduce the overall cost.
2. Transparent Processing Fees
Hidden expenses can add up to a big amount. So, ensure checking the charges beforehand. This will help you make an informed decision. The leading banks provide all the information for customers to be fully aware of the additional costs. These will include:
- EMI bounce
- Repayment instrument swap
- Stamping and document retrieval charges.
The fees also should not be more than up to 3.5%. This is usually deducted from the loan amount at the time of fund disbursal.
3. Payment Flexibility
The bank must allow you to make up to 40% of the part payment. This can reduce the unpaid principal amount the subsequently the EMI and the total interest. You should also be able to get a top-up on your existing loan amount. It is a much more convenient and quicker option rather than applying for another loan altogether.
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4. Minimum Documentation
The best personal loan bank is the one that offers the funds without a fuss. It can help you receive the cash immediately without delays. Customers should only have to submit a valid KYC, 3 month’s bank statement, net banking or debit card details and eSign for quick disbursal. Avoid banks that require detailed papers, information and lengthy forms. This is time-consuming and might delay the overall process. For more information visit this site: f95zone
5. EMI Affordability
To know how to get a loan online that will suit your needs, consider checking the monthly EMI payments. Getting an approximate beforehand will help you arrange the finances accordingly. Use factors like amount, period and interest rate for correct calculations. Use an online calculator and move the bars to adjust the amount as per your convenience.
Use a loan eligibility checker to improve the possibilities of qualifying for the loan. Whatever you pick, make sure you can repay on time. Try to work with a credible bank to make the process smooth and hassle-free.