Choosing the right personal loan and personal loan providers is no walk in the park. It requires tons of analysis & evaluation. You’ll need to carry out thorough market research to find the best loan and lender for your needs. It might seem daunting but this article will make things easier by highlighting 5 of the most important criteria that you should weigh your options against. They will help you make the right selection of finance & financer.
1. Loan amount on offer.
You should look for lenders that are willing to provide the loan amount you need. This is probably the first criteria that a good lender should fulfill. Different lenders will judge your loan worthiness differently and it’s possible that some lenders might not provide the loan amount you need.
2. Repayment comforts.
The lender should offer a choice of repayments plans. Some lenders offer up to 6 or 7 repayment options such as a step-up, bullet, EMI holiday, etc. Each of these repayment plans is suited for different kind of financial profiles. The more choices you have the easier it is for you to find a repayment plan that best suits your financial capacity.
All personal loan providers will have their own set of charges. How many charges there are and how much each charge will be different from the next lender’s charges. This is why it is important to compare charges before finalizing on a lender. While compare charges remember to pay special attention to the processing fee as this is one of the bigger charges involved. Most lenders charge between 1 & 2 percent of the loan amount – making this an important personal loan percentage to compare when evaluating the various lenders. Also look at late payment, prepayment & cheque bounce charges as you might encounter these while repaying your loan.
Most people compare numbers and figures and rightly so; a personal loan is a financial decision and needs to be backed by sound mathematical planning. However, sentiments of others can help make the right decision as well. That’s why you should what other people feel and say about the personal loans & personal loan providers out there. Positive reviews and good ratings are a sign of a good financial offering. It’s important you find unbiased reviews such as those on aggregator sites. These reviews are from real borrowers and not marketing gimmicks.
5. Interest rates.
This is one of the most important personal loan percentages. That’s why many lenders compare this rate before doing anything else. But this is a wrong approach. One should first find a few good loans and lenders that provide good loan amounts, comfortable repayment solutions, have good reviews have fewer charges and then compare their interest rates to see which the best is.
These were 5 of the more important criteria you should base your selection process on. They will ensure you get a loan and loan provider.
Good luck and all the best, happy borrowing!