How To Choose A Personal Loan Based On The Rate Of Interest?

By Author: Ankit Verma
Total Articles: 23
Comment this article

The personal loan being an unsecured loan type enables a wide range of financial solutions. It supports immediate cash needs for various personal reasons with a flexible loan repayment tenure. Observing the inflation and challenging income opportunities, lenders considerably charge an affordable interest rate that varies from lender to lender.

Individual borrowers can access a credible instant loan app and use the in-built EMI calculator to know the interest rate levied on the desired principal amount. This gives a clear picture of the EMI to be paid every month additionally with the interest rate.

Compare and choose a suitable personal loan interest rate.
If you are worried about interest rates on personal loans, do your research by visiting the official websites or instant loan apps of the financial institutions and NBFCs and compare their current interest rates. Even if your existing lender offers an attractive interest rate, it is advisable to compare with different lenders before opting for a personal loan.

Personal loan apps Interest rate per month Interest rate per annum
SimplyCash ...
... 2.08% per month 25% p.a
RupeeSmart 2.75% per month 33% p.a
MoneyCash 3.00% per month 36% p.a

The above mentioned are few instant loan apps with their current interest rate. Likewise, you can compare others online to make your loan repayment affordable.

Use a personal loan EMI calculator.
Before applying for a personal loan online, you also get the option to check your loan amount, tenure, and EMIs based on the interest rate levied. A loan EMI calculator is an easy-to-access free online tool that gives accurate EMI results considering the interest rate and tenure. So, to avoid any repayment surprises later, it is better to check the interest charged on the loan amount using the EMI calculator.

Further, a flexible loan tenure can be customized using the loan EMI calculator. Once the tenure and interest rate suits the borrower, it enables faster decision-making to proceed with the loan application without any burdens as all the figures are evident in the first phase.

For instance, if the desired loan amount is Rs.50,000 and repayment tenure is for 6 - 24 months, you can repay it at a maximum tenure period of 24 months or less. If your repayment tenure is shorter, higher will be the EMI, and if your loan tenure is longer, lower will be your EMI based on an interest rate charged by the lender.

While calculating your loan EMI, consider any salary hike or increments that you expect shortly and set a higher EMI amount, reducing your repayment tenure.

Enquire about the additional fees
Before applying for a personal loan, it is important to check the processing fees apart from the interest rate. Along with the interest rate, always compare the processing fees plus GST charges. It may vary from lender to lender, like the interest rate.

SimplyCash personal loan based on the rate of interest
Hero FinCorp, one of the fastest-growing financial services companies in India launched SimplyCash-an instant personal loan app, to provide unified solutions for multiple financial needs.

SimplyCash instant personal loan app in India provides a wide range of personal loans at an affordable interest rate of 2.08% per month, which is relatively lower if you compare it with the prevailing online lenders.