Personal loans are the easiest when you need some urgent cash. In the market, a variety of lending options are available. To choose the best one, you must compare the available products and get the best deal according to your requirements. Here are some must-read points:
Compare Interest Rates
Personal Loans can be compared first on the basis of interest rates offered. They may vary across banks depending on your profile. This is further linked to your occupation, income, credit history, etc. Personal loan interest rates can range from 13% to 25%. Opt for the minimum possible rate that you can get, given your application profile.
Other Charges
Check other charges such as processing fees, pre-payment charges and documentation charges because they may increase the overall loan amount and may vary from bank to bank.
Evaluation of Loan Offers
You must first calculate the entire loan cost across different banks (rate of interest and banks’ other costs). Evaluate offers to keep the tenure of the loan constant. This process will help you get the best deal.
EMIs
EMI is the Equated Monthly Installment. It is the loan amount and the interest on the amount equally divided across every month in the loan tenure.
Tenure
Tenure is the period in which the personal loan is paid back to the lender. It varies from minimum 1 year to maximum 5 years. If you have a longer tenure, you will end up paying larger interest with a lower EMI. On the other side, a shorter loan tenure will carry higher EMIs and the interest amount will be less. You must compare the personal loan offers by keeping the tenure constant.
Eligibility
Before applying for a personal loan, you must know the eligibility criteria of various banks on the basis of which they offer loans. Checking the eligibility parameters will assist you in finding the best personal loan deal.
Turnaround Time
It is the most important factor in the evaluation of your loan application when you are in urgent need of money. Turnaround time is the time that banks take in processing your loan application; you must check this parameter that may vary from bank to bank.
Ready to make informed decisions. Go to bookmyloans.in to get the best comparisons and rates.