Personal Loan: Factors To Check Before Finalising An Offer

By Author: Shreya Eppili
Total Articles: 69
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A Personal Loan effectively helps cover various financial requirements when faced with a cash crunch. This Loan is easy to understand and offers multiple benefits. When you apply for a Personal Loan, know that you can utilise the funds from this Loan for any legitimate financial requirement. Banks usually do not have any limit on the end-use of these funds if you do not use the borrowed money for any illegal purchases or other unlawful activities.
You also have the flexibility to repay the Loan using smaller and pocket-friendly equated monthly instalments. Besides this benefit, you can easily choose a Personal Loan apply online. However, choosing the best Personal Loan based on your requirements can be tricky, given the range of options available. Here, you need to check some key factors when selecting:
Compare the interest rates
The interest rate is among the most important things to consider when selecting a Personal Loan. This rate differs significantly across banks, and even a marginal difference can save you a substantial ...
... sum. Identify the best interest rate so that it does not turn into a financial burden later.
Ask about customer service
The quality of customer service the bank provides makes a significant difference. If your chosen bank offers excellent customer service, the process of managing your Personal Loan will be smoother. So, determine the ease with which you can reach the bank’s customer service team, the clarity of their communication, and the availability of online support beforehand.
Consider the associated charges
Personal Loans have various charges, including late payment charges, processing fees, and more. Check these prices when choosing a suitable bank for your Loan.
Understand the eligibility criteria
The Personal Loan eligibility criteria typically differ across banks. These generally include income level, age, credit scores, employment history, etc. Ensure you meet these criteria when applying for a Personal Loan.
Know the disbursal time
You should check how quickly the Personal Loan will be disbursed. Some banks may need a few days, while others may offer instant approval.
Know the Loan tenures available
The tenure is the period over which you repay the Personal Loan. This is a crucial factor. Some banks may offer Lone tenures ranging between 12 months and 84 months. A longer tenure decreases your EMIs. However, it increases the interest component. On the other hand, a shorter tenure increases your EMIs. However, your total interest outgo is lower.
Know the foreclosure policies
Checking the foreclosure conditions and terms is usually beneficial.
Conclusion
Applying for a Personal Loan is a significant economic decision. Hence, consider all the aspects of your monetary requirements before deciding.