Personal loans are unsecured loans that can be easily obtained as a result of very limited paperwork and the absence of security or guarantor.
Regardless of your factor in getting a personal loan online, here are some tips to help you find the most effective product:
- Compare the loan interest rate
A bank can approach you using “just 14% per annum” for your personal loan. Or go to the bank that holds your savings account and find the interest rates are “simple 16”. However, appealing to the bank will make the deal appear to you, an important step before deciding which bank to seek funding from is to study the personal loan terms of different banks and differentiate interest rates. There are many ways to do this – you can often do your own research on the websites of various banks and find out their interest rates or go to a monetary website like Bank Circle. For information based on the need you enter.
- Compare rates and fees
Interest rates are not the only things you need to differentiate when choosing a personal loan. You should see many fees charged by the bank. Typically personal loan related expenses: processing fees, late payments, check bounce fees, loan cancellation fees and service tax for each service provided by the bank. Of these, the most important is the handling cost, which is usually between 1% and 3%.
- Look for repayment flexibility
Many personal loan products come with full and partial down payment fees. This means that if you want to repay the impressive amount of your loan by the end of the term, you will definitely have to pay a small fee. Some banks do not pay foreclosure fees, although most bank fees are between 2% and 5% of the balance. This will help reduce your total financial liability burden as it will deduct interest payments for you, saving up to Rs. 5 lakh loan of Rs. 10,000 to Rs. Returns up to 25,000.
- Find the EMI you can pay
Before you start financing, you need to make sure that you are able to repay the loan regularly and on time. To do this, you need to understand the quote on the regular monthly installments that you have to pay for the loan amount. When you use an EMI calculator, it is very easy to recognize your approximate EMI. Bankcircle’s comprehensive EMI calculator allows you to consider details such as financial size, duration, interim rate, processing fees and the possibility of making a down payment. Make sure your EMI deductions in a month do not exceed 50% of your income.
- Explore other loan opportunities
It is not always the way to get personal loan in an emergency. Reach out to your family and friends and see if they can pay you, especially if the amount is not large. This way you can eliminate the hassle of having to pay extra at a bank. However, you should also be aware of the fact that financial transactions can sometimes disrupt relationships. So if you take an interest-free loan from a family member, make sure to repay them immediately to avoid tension in your partnership.
In addition to the above factors, you may also think about the penalty for late EMI payments, the credibility of the bank you are borrowing from, the customer support of the bank and the timing of the loan. Whatever decision you make, keep your economic goals and abilities in mind.
Experienced, qualified and decision-making professional with many years of experience as a Chartered Accountant. Hemant has helped him develop expertise in hiring, sales, customer relationship management and entrepreneurship in a variety of industries. Hemant holds a B.Com (Hons) from Delhi University and is a Chartered Accountant by profession.
Specialties: Accounting, Taxation, Corporate Law, Business Auditing, Entrepreneurship.