Surely, there are some aspirations in your life that you would love to see fulfilled. For renovating your interior, travelling to foothills of Himalayas or having a destination wedding – you need the right kind of help. Right?
Personal loans are a good way to fulfil your aspirations and fund your emergency needs. Personal loans are unsecured loans that are easy to apply and get due to their hassle-free process.
How Can You Use Your Personal Loan?
You can take a personal loan for various reasons such as:
- Health or medical emergency
- Social functions such as wedding
- Debt consolidations
- Credit card bill payment
- Funding for holidays
- Purchasing appliances or vehicle
- Home loan down payment
Best personal loans com Personal loans are not only easy to procure but also have less paperwork. You do not need security or guarantor to obtain best personal loans. Personal Loan interests are lower than other types of loans. If you thought lower personal loan interest is only repayment benefits you get, you are wrong. Personal loan offers relaxed repayment terms which make them more lucrative.
8 Questions You Should Ask Yourself –
- Does personal loan sound like the right option for me?
But you must be careful. Why? There are many different personal loans in the market. While they might look the same, they differ in features. If you want to enhance your benefits, you must choose the best personal loan. Here are some tips to help you choose the best personal loan.
- Have I compared the Personal Loan Interest Rates?
When a bank approaches you or you approach a known bank, they make their interest rate seem attractive. You must compare the personal loan interest rates to find and select the best loan. It is an important step that helps you decide which loan will suit you. You will also find various informative articles online regarding personal loan interest rates.
- Have I Checked the Repayment Terms?
If you are looking for a reliable personal loan, you must check repayment terms. Personal loans have relaxed repayment terms. The repayment term, however, varies from lender to lender. A good personal loan offer repayment terms of your choice.
- How Can I Get Affordable EMIs?
Before you apply for a loan, you need to ensure that you will be able to make steady repayment. This will help you to avoid any penalties and repay your loan on time. To ensure that you make regular repayments, you must get an estimate of equated monthly instalments or EMI.
You can use EMI calculators online to calculate EMI using personal loan interest rate, tenure, loan amount and repayment terms. EMI calculator also considers factors such as processing fee. If you know your EMI in advance, you can prepare yourself for regular payments in future or find out whether you should take a loan or not.
- What are the Fees & Charges?
Bank or lending institute might charge various fees on personal loan including processing fees, cheque bouncing charges, loan cancellation charges, service tax and late payment charges. Processing charge is one of the most important charges on loans charged by every lender which is, usually, 1% to 3% of the amount. You must check these charges before selecting the best personal loan for you.
- What is the Repayment Flexibility?
Mostly, all personal loans come with either full or partial pre-payment charges. This charge is applied if you want to repay your outstanding loan amount before the end of your loan tenure which might be between 1% to 5% of the balanced amount. However, some banks allow you flexibility on repayment. These banks do not charge any foreclosure fees. Best personal loan offers flexible repayment terms.
- Am I going through a hassle free loan process?
When you are applying for a personal loan, you expect the financial help to reach on time. But some banks or lending institutions might have complex procedures and excessive documentation. Best loans have simple loan application procedure with minimal document requirement. Many banks and lending institutes will allow you to get a pre-approved personal loan in less than 30 minutes if you are an existingcustomer. Best personal loans allow you to apply online.
- What is the turnaround time for loan disbursal process?
When you are stuck in an emergency situation, you need funds immediately. You must check whether the bank is giving quick turnaround and you get funds easily and quickly.
The above points will help you to choose the best personal loan for you. Apart from the tips mentioned above, you must also check penalty on late payments of EMI. You must also check credibility and customer support system of the bank or lending institute. While choosing a personal loan, you must ensure you bear your financial aims in your mind.