Our top tips for choosing the right personal loan

Dec 11, 2021

Our top tips for choosing the right personal loan
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You may require immediate cash at some point in your life in order to meet your various personal needs. Whether it is a medical emergency, debt consolidation, wedding, home renovation, or higher education, a personal loan is the best way to meet your needs.

 

Personal loans are unsecured loans that are easier to obtain because they require less paperwork. Furthermore, you do not need to provide a guarantor or security to obtain this type of loan. However, before applying for one, make sure you find the best personal finance for your situation. Here are some helpful tips to help you make the right decision.

 

Check the eligibility criteria

It is critical to understand your personal loan eligibility criteria because it will make the application process easier. Eligibility criteria vary from lender to lender and include factors such as credit score, monthly income, employment type, applicant age, and job status. The loan amount granted to the applicant may also differ. As a result, in order to apply for personal finance from a specific bank or lender, you must meet their specific criteria.

 

Compare

Before taking out a personal loan, you should do your homework just like you would with any other financial product. Don't rush in; instead, shop around and compare APRs (annual percentage rate). The APR calculates the interest payable, other charges, and when payments are due, and provides the true and total cost of the loan. Banks will almost certainly claim to offer the best rates to existing customers, but be cautious and compare. Alternatively, you can have us do it for you!

 

Read the small print

Before applying for a loan, carefully read and check the terms and conditions to ensure that you are firstly eligible for the loan and, secondly, that you are not being caught off guard by signing up for something with hidden charges.

 

Evaluate the monthly payments

Most lenders give the loan borrower the option of repaying the loan amount within a certain time frame. Banks typically offer one to five years of tenure to return the money with varying personal loan interest rates. Consider your financial situation and how much you can afford to pay in EMIs. You should also ensure that your income is sufficient to cover the loan repayment.

 

Check the disbursal time

If you have an immediate need for funds, it is critical to check the processing and disbursement time. As when it comes to choosing the best personal finance, it can make a significant difference. Check to see how long it will take for the loan amount to be deposited into your bank account.

 

Do not forget early repayment charges

When looking for a loan, an early repayment penalty is an important factor to be considered. As many loan providers will apply a charge if you want to pay it off early, therefore it's a good idea to find out how much this will cost you before applying for a loan.

 

Lastly avoid falling for gimmicky offers

There are lenders that offer loans at deceptively low interest rates or with gimmicky schemes. When you read the fine print, you'll find that these loans are generally more expensive than you expected. These are sometimes based on floating interest rates which makes the interest rate appear initially low but can increase substantially with time . 

 

 

Choosing a personal loan to meet your financial needs can be very helpful, but only if you have chosen the best personal loan. From debt consolidation to financing a big purchase, BanqMart makes the loan process easy and helps you choose the best option. Call one of our experts today to learn more about your options.

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