How To Find The Best Personal Loan with these 5 Tactics
Need for money comes to us at different stages of our lives. Requirements come in different forms – could be a family need or a timely opportunity to grab, a wish looked upon for a long time or a personal related need. Whatever the need be, to keep you better prepared and help you grab the best solution in such situations, here we share a few key learnings and tips.
Here the 5 tips to find the best personal loan in the market.
1) Know your credit score.
First of all, you have to know your own credit score. The personal loan is an unsecured loan, so it is completely provided based on your credit score and income documents. The credit score level considered by banks is above 650. The higher score you have, then you are eligible for lower rates.
2) Interest rate and other charges.
The banks have so many add on charges for loan other than the interest rate, you have to consider that before a loan.
I) Processing fee
It’s a one-time fee for processing your loan. There are too many banks and NBFC’s are India providing a personal loan.so, they have their own policies. So processing fee for Personal loans is also different.
Starting from 0.5% to 2.5% of the loan amount.
Banks are providing loan for 2yrs to 7yrs. But we have an option to pay their loan prior to the expiry of the loan’s due date. There are partial and full prepayment options. Banks charge a fee for the prepayment of the loan.
Starting from 2.0% to 4.0% of the loan amount.
III)Late payment charges
When there is a delay in paying your monthly EMIs of your loan, banks charge a late payment fee will add with your EMI amount.
Starting from 2.0% to 3.0% of the EMI amount.
It is the most important thing to focus while taking a loan. The interest is the amount charged by the bank for the loan expressed in percentage of the principal amount. It is calculated annually. Before taking a loan, you have to compare the interest rates of different banks and what type that is? Fixed or floating interest rate. The interest rate offered by top financial institutions in India.
3) Calculate the EMI by using an EMI calculator.
Before a personal loan, you have to calculate the EMI that you can afford. The banks are providing loan from 2yrs to 7yrs. You can calculate the EMI by using an online EMI calculator providing loan amount, rate, and tenure.
The banks are providing a maximum EMI is equal to 50%- 55% of your net salary(if there is another EMI, that will deduct).
4) Consider your needs, not eligibility.
Banks are offering maximum loan amount based on your eligibility, but you must consider only your needs, not the offers, why because it will bring you in over expense. The most important thing that, if you looking for a home loan in future, then this EMI will reduce the eligibility of the home loan.
5) Avoid too many application submitting (only enquires)
You have to make enquiries in banks for comparison and analyse yourself, but don’t submit the application before you choose the best. Because too many applications will affect the credit score.
Here we are, To serve you to choose a better personal loan.