How To Choose The Best Personal Loan To Match Your Needs?

admin | November 13, 2020 | 0 | Loan

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Going through a financial crunch can be very stressful. However, when you are trying to bring big changes in your life, you can hit a big roadblock if capital requirements. Taking a personal loan to fund your next big goal or to take care of a personal financial matter is one of the most efficient ways to go by. Taking a personal loan is fairly easy and most of the processing these days is done through the online mode only. Some great financial institutions, like Fullerton India, provide excellent schemes for personal loans at very attractive interest rates.

The process of getting a personal loan online from Fullerton India is very easy and you just have to secure all the documents for the personal loan. The major benefit of taking a personal loan is that there is no restriction on spending. Hence, you can just take the loan from a good financial institution and use it wherever you want to as long as you are repaying the installments on time.

However, with a lot of financial institutions out there, the number of schemes available for taking a personal loan is also very high. This can get very confusing at times and even become outright tedious too. However, there are a few factors which if kept into consideration will save you a lot of time and help you in finding the best personal loan for you. The following are the four major factors to consider while choosing a personal loan that suits you the best.

4 Major Factors to Consider While Choosing a Personal Loan:

1. Eligibility Criteria

A lender with lenient and easy eligibility criteria should be preferred over the one which hassles you a lot just in the name of satisfying eligibility criteria. This reduces the effort required to acquire funds and speeds up the verification and approval process.

For example, with trusted NBFCs, you get great flexibility when it comes to the eligibility of age or income while applying for a personal loan. An institution or an NBFC that understands your urgency should be given higher importance considering their professionalism over the ones delaying the process due to rigid rules of eligibility.

2. Interest rate

People don’t usually compare the interest rates of the different personal loan schemes offered by different financial institutions. They think the difference of a few basis points in the rate if interest does not affect their EMIs. However, the truth is exactly the opposite.

Interest rates are what make your payment compound over time. A small difference in the rate of interest will end up making you pay a substantially larger amount as it gets compounded annually.

Lenders usually take your credit score and financial viability to calculate the final rate of interest that they want to offer you. If you have a good credit score, then you should always negotiate for better terms related to the rate of interest. You should always check for the interest rates being offered by other financial institutions for the same conditions.

3. Additional fees and charges

It is always a smart move to check with your lender if there are any additional fees or charges associated with the loan before you sign the final papers. Go through the documents carefully and try to figure out if there is anything out of what has already been agreed upon.

Don’t trust a lender which hides charges no matter how small they are. These small charges can accumulate to become a huge sum of money during the tenure of the loan.

4. Tenure

You are taking the loan for a long period of time. To maintain consistency in repayments, the lender should be willing to make the tenure and timings of repayments flexible as per your convenience. Financial institutions do provide flexible tenure for repayment. This reduces your chances of making default in the future.

If you keep these points into consideration, then you will surely be able to choose the best personal loan that suits you.

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