With the time passing by the personal loan, the industry is growing abundantly, and especially, during the time of Covid-19. An example of its growing popularity is proved by the dozens of emails and ads we can see over the internet. But one should not cave into the fancy advertisements and posters claiming to offer huge discounts over a personal loan. Moreover, before taking one of these loans, it is suitable to have one’s own market survey just to ensure the genuineness of the financial institutions.
Personal loans are quite easy to avail of these days, but there are a few things that are to be considered before applying for one:
- Consider the all-In Cost. Interest rate is not the only additional cost that a borrower has to pay. There are other fees like processing fees (up to 1-2%), repayment fees, and late payment fees which vary from one financial institution to another.
- Prioritize the needs while borrowing. If an individual has a requirement for 4 lac then he/ she should borrow an amount of 3 lac and not more, even if the executive asks to do so. Because in the end, the borrower has to repay the amount with added interests within the given tenure.
- Look for better interest rates. Personal loan interest rate ranges from 9.45% to 25% depending o the financial institution. To avail of loans at a low-interest rate one has to keep on looking for verified financial institutions. Moreover, a personal loan EMI calculator can also be used to compare the interest rates of various banks.
- Consider the EMI tenures and repayment methods. There are tenures for the repayment of the credit which can be customized according to the borrower’s need. For example, one can repay the entire loan amount within a tenure of 6 months, whereas the other person might need a time period of 1 year.
- Check the CIBIL score before applying for a personal loan. As personal loans are a form of unsecured loans and there are no assets mortgaged for security thus lenders always check CIBIL score as a security guarantee. Based on this score one’s loan is approved.
- Talk to your near and dear ones before applying for a loan. Before lending money from the bank one can always take consultancy from their family members or friends. It can even be possible that they help you out in the time of need and you might not have to take a loan in the first place.
- Although there are a lot of fraud companies trying to provide loans PBN personal loan provides genuine service with the minimum interest rates and negligible processing fees
Also Read:- The most Effective method to Get a Low-Loan Cost
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