Posted On: 07-July-2022
If you're searching for personal loan options or offers you'll get plenty of them. With so many lenders in the market and no collateral risk you can be overwhelmed. During this time you are likely to forget the crucial factors involved in personal loans. Before you choose from the options of best personal loans you must find out the interest rates from different lenders as well as the criteria each of them provide.Here are some essential parameters you must consider while you compare personal loan.
1. Eligibility - It gets easier for you to avail loan when your lender doesn't ask for much documentation to check your personal loan eligibility. Therfore, you must choose a lender that asks for least of documentations. It's not the same with all the lenders, thus you must evaluate to get the one that best suits you.
2. Interest Rate - The most important aspect of any loan is the interest rate that is charged with it. Some lenders offer loans at a reasonable rate of interest whereas some charges high interest rates. Thus we must measure the pros and cons of all and come to a conclusion about which one is better. Obviously all of us want to pay a lesser amount of interest rate, and there are lenders who have promotional schemes and offers running often, which tend to bring down the interest of the loan. So go for them.
3. Additional Charges - When you apply for personal loan it's not just the loan amount that you pay, there's also additional charges that are involved. Different lenders charge different amount as processing Fee which comes under additional charges. Therefore you must check all the additional charges and ask for reduction of there's any chance. You must always go for the lender that charges the last rate of additional charges.
4. Tenure and EMI - The longer you choose the tenure to be the lesser will be the EMI that you pay monthly. Make a detailed comparison of the maximum repayment tenure offered by the lender and the corresponding EMIs. But the longer is the tenure the greater will be the number of times you pay your interest. Compare the different tenure and EMI amount from different lenders and choose the one that you think suits your income as well as your need.
5. Prepayment and Foreclosure - While opting for personal loans you must pay attention to the terms and conditions related to foreclosure and prepayment. Some lenders charge a higher rate of interest when you go for prepayment or foreclosure. While low interest personal loans might seem attractive, the deal could include a hidden future cost.
With so many lenders in the market you must be careful and cautious while going for personal loans. Assess all the important factors involved and only then make a choice.