Personal loans are unsecured by nature and owing to this factor you can apply for one quite easily on only a few lender-specific terms. Since it is a collateral-free loan, you can rely on personal loan finance to fund your vacation, business expansion, medical emergencies, your child’s wedding or overseas education plans, and can even use it to shop for expensive appliances.
How to Choose the Right Personal Loan For You
Apart from being an unsecured loan, the other significant factor that contributes to its popularity is that personal loans do not have any spending constraints. Therefore, you can use the loan amount to meet any financial commitment, without having to specify that to your lender in advance.
As compared to earlier, today almost all financial institutions offer personal loans on lucrative terms. This makes deciding on the best loan that befits your needs tougher. However, you can abide by a simple process to select the best loan for yourself. Read on to know about the ways in which you can select the right personal loan.
Scout for a lender with easy eligibility criteria
In order to select the best personal loan, the first step is research. Scout the market to pick a lender who has simple, easy-to-meet eligibility criteria. For instance, you can select reputed lenders like Bajaj Finserv to apply for a personal loan, based on their simple terms and conditions. Here as a resident citizen of India, you can easily qualify for the loan if you are between 23 and 55 years of age, working in a reputed public or private sector company, and maintain an equitable monthly salary. Moreover, you can use the handy personal loan eligibility calculator to know more about your eligibility for the loan, as the minimum monthly salary parameter alters as per your city of residence. This makes it easy for you to see if you qualify for it before you start the application process.
Compare personal loan interest rates to narrow down on a lender
Depending on your credit score and how you qualify for the personal loan based on other parameters, a lender decides the interest rate for your sanction. A good credit score of 750 or more is likely to get you a low interest sanction, as compared to a low score. You can use a personal loan EMI calculator to compare loans based on their interest charges and then pick a loan structure that suits your budget. This online tool allows you to calculate your EMIs and total interest charges. So, you can toggle the other parameters until you reach a cost effective EMI for your loan.
Check to see if you have repayment flexibility
Unlike a secured loan, personal loan finance comes with a shorter tenor. Thus, it is important to select a lender that allows you to repay the loan via a flexible tenor of your choice. This makes it easier to repay comfortably without disrupting your monthly budget. In most cases you may have to repay the loan within a tenor of up to 60 months, as per your convenience. However, this is likely to differ across lenders.
Watch out for additional fees and charges
Apart from the interest rate, when taking a personal loan, you must enquire about the other applicable charges. From processing fee, EMI bounce charges, and statement charges to other penal charges, personal loan part-prepayment charges and foreclosure fees, you may have to pay a small fee for varied reasons across your repayment duration. However, top lenders attach zero to nominal charges for these coincidences. So, select the one who assures you of maximum affordability to keep repayment easy on your pocket.
Look for lucrative features and benefits
Next, you must find out about the other benefits attached to a sanction to add more ease to your application and repayment process. Submit a quick online application and apply with lenders like Bajaj Finserv to get a hefty sanction of up to Rs.25 lakh on low interest rates, within just 24 hours. Here you stand to benefit from additional features like the flexi loan facility.
Here you can withdraw from your sanction many times, in parts, as per your requirement and pay interest only on what you use. Thanks to this facility, you can also choose to repay interest-only EMIs through the tenor and pay the principal only at the end. This reduces your EMIs by up to 45%, which helps you manage your cash flow better. You can also enjoy easy doorstep pickup of documents, online account management, and other such exciting features on this loan.
Conclusion | How to Choose the Right Personal Loan For You
With these points in mind, you can proceed to select the right personal loan right now. When at it, don’t forget to check your pre-approved offer to enjoy customised personal loan offers and instant approval under 5 minutes. All you have to do is enter you basic details like name and number to access deals of your choice. Apply using a deal that suits you and qualify for a personal loan without documents or with minimal paperwork.