The procedure availing of personal loans are extremely simple both online and offline. To apply for personal loan, you just need to fill up the loan application form either online or offline and then submit documents. The lender then verifies the loan application and if you fulfil the criteria, the application gets accepted.
However, selecting the right lender to apply to is a task. Only selecting a lender with cheap interest rates may not be enough while making this loan application.
Following are some things to keep in mind when you avail of a personal loan India –
- Check the disbursal time:
You should receive the the funds as soon as possible after the loan application gets approved. Most lenders have the disbursal time clearly specified. There should not be any inordinate delay from the lender’s side. This helps you get funds in time when you need it.
- Loan tenure and instalment flexibility:
The best personal loan offer is the one which provides you flexibility with the tenure and the loan repayments. The monthly installments should be fixed after considering your monthly income. The total of all the installments should not exceed 40 per cent of your income. The lender you pick must give you the flexibility to set the instalment in tune with your repayment capability.
The best personal loan India should be the one which allows you to choose the loan repayment tenure. There must be an allowance for pre-payment or part repayment so that you can do so if you have surplus funds.
- Interest and other associated costs:
Competitive rate of interest is also essential. Taking a personal loan with the highest rate of interest increases your monthly outgo and the instalment amount. Before accepting a personal loan offer, make sure that you are getting the best deal. You can negotiate with the lender provided you have a good credit score. Each lender charges loan processing fees. While looking for the best offer, pick a lender who does not have high loan processing fees since this is charged as a percentage of the loan amount.
There are other costs and charges for the loan. Ensure to pick a lender who displays these charges transparently either online or offline. This way, there is no scope for surprises in the future.
- Negotiations with lender:
These loans are highly flexible by nature. Lenders have a range of interest and other costs that they charge. This ensures that there is some legroom to negotiate. In the case of a personal loan, a lot of factors depend on the repayment capability of the borrower. The lender you choose must allow you to negotiate.
- Check the funds approved:
Apply for personal loan which comes closest concerning your fund requirement. Choosing a loan offer that does not meet your fund requirement can lead to future problems, especially if you need funds for any emergency. Lenders do not approve personal loans in quick succession which is why you need to focus on the disbursed loan amount and your fund requirement.
- ArjitChalmela's blog
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