A personal loan is one of the handy options whenever you face short of funds. Currently, there are various lenders in the market which are offering innovative personal laon. If you are facing a financial crisis and looking for a loan. You can also apply for a personal loan provided you should have a regular monthly income.
Few points which you should consider while opting for personal loans are as follows:-
1) Compare all the available loan offers: You should, first of all, compare the interest rate of various lenders. Since it is an unsecured loan, the rate of interest usually starts from 10% and can go up to 20%. The minute difference in interest rate would result in a big difference in total cost. The interest rate is not fixed for all individuals. It depends on many factors like your credit score, your source of income, age, and many more.
Choose the offer which has the lowest interest rate. Apart from the interest rate, you should also consider the processing fee, prepayment charges, foreclosure charges, etc. You can check the Karnataka Bank personal loan.
2) Check your affordability to repay the amount: Before submitting the loan application, you should check your repayment capacity. You can use the personal loan EMI calculator to choose the best affordable
EMI for you. Here you need to enter the loan amount, tenure, and rate of interest, it will display you the monthly installment you have to pay. The ideal amount of EMI should not exceed more than 30% of your total monthly income.
You should select the tenure wisely. The tenure is indirectly proportional to the EMI. Higher tenure will have lower EMI whereas the lower tenure will have higher EMI.
But you should not choose the longer tenure just for the sake of shorter EMI. If you would choose the high EMI which has shorter tenure then you may have to compromise with your other daily needs.
3) Estimate the requirement of the loan amount: Many times, lenders will offer you a loan amount that is more than what you need. You should evaluate the amount which is falling short in your requirement.
Suppose you are the host of your daughter’s marriage. Your total requirement is 20 lakh rupees for accomplishing all the arrangements .You have 15 lakh rupees. So you should only borrow 5 lakh from the personal loan.
4) Don’t get into the trap of gimmicky offers: Several NBFC has entered in the personal loan market. They claim to offer you the highest loan amount with the lowest interest rate. Many NBFC will also offer you a preapproved loan with minimum disbursal time.
Above are a few vital points which you should keep in mind while opting for an unsecured loan. These points will be beneficial for you to avail of the best personal laon for you.
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