A personal loan comes to your rescue whenever you are going through a cash crunch. However, it is imperative that you choose the right personal loan during such times to avoid paying higher than necessary. There are a bunch of online tools available to help you choose the right personal loan for you. The following tips will also help you out!
Extensive Product Research
It is important to do good product research if you wish to reduce the burden when it’s time to pay it back. Personal loans come with a higher rate of interest, so if you choose one that is pricey, you will end up paying higher EMIs than you bargained for. You can easily find a good loan option using loan aggregating websites such as Policy Bazaar and Loan Khoj.
The chances of your loan application getting approved depend on whether your profile fulfils all the requirements in the eligibility criteria. This includes salary, CIBIL score, existing EMIs and economic status. After you have assessed your profile, based on the products that you have chosen in the first step, list out the ones with higher chances of approval.
Choose the Lender
It is important that you choose the right lender for you. You can get personal loans from public or private banks and NBFCs. Most people choose to go with mainstream banks; however, you would be surprised to find that many NBFCs provide more benefits such as concession in processing fees, reduced interest rates, increase in borrowing limit for loyal customers. You can request for loan quotes from your list of prospective lenders and zero in on the ones which fit your specific needs.
EMI and Tenure Options
Most borrowers often choose the loan with the greater repayment tenure since managing a loan would be easier for them. However, in hindsight, they realize that they end up paying more since interest rates are higher for longer tenures.
You might have to look at your monthly budget for expenses and decide how much you will be able to put aside for EMIs. Based on this information you can now choose a loan option with the right repayment tenure and interest rate for you.
You may also want to choose a lender that charges interest on a daily basis such as FlexSalary. This is an ideal option when you need a loan for a very short amount of time but aren’t sure when you will be able to pay back.
Hope these tips help you in choosing the right instant personal loan for you!