Answered: Your most burning questions on choosing the right personal loan

 

Getting a personal loan is pretty easy due to less paperwork and lack of requirement of security or guarantor. It is a flexible loan wherein the financed amount can be utilized for purposes like wedding expenses, medical emergency, clearing credit card dues, funding an overseas trip, buying a TV, etc. Thanks to digital applications, availing of a personal loan is just a mouse click away.

Loan Eligibility: Since the loan is needed for meeting a particular exigency, it is critical to pick up a financier who is ready to sanction or approve the required loan amount. Inadequate finance may push the borrower to approach multiple financiers leading to customer dissatisfaction and delay in meeting the fund gap.

Easy documentation: It is also important that documentation is easy and the loan application gets processed time in a short time. Most brick-and-mortar lenders process a personal loan in 4-5 days while digital lenders take 5-10 minutes to credit the funds to the borrower’s account.

Affordable Installments: Many banks and financial institutions offer personal loans at various interest rates. One may directly visit the financier’s website or nearest branch to enquire about the interest rates and installment payable. One may compare the rates and choose the lender offering the lowest EMI.

Flexible repayment: Since a personal loan is availed to meet a personal emergency, one may wish to repay the loan either in multiple tranches or lumpsum. Prior to applying for the loan, one may check about the pre-payment or foreclosure of the loan. Most lenders allow pre-payment of the loan after the initial 12 months with or without charges.

Alternate sources of funds: If the present fund requirement can be met through friends and relatives, one need not go through the cumbersome loan process.

Apart from the above, one also needs to consider the reputation and accessibility of the lender, feedback of existing customers, hidden charges, etc. Of late, many financiers are offering pre-approved loans or top-up loans to their existing good customers. One must borrow only if in need, not because funds are available to them.

Stay safe, healthy and, happy!!!!!