Personal Loan India: Consider these factors before approaching a lender.

Do you have any medical exigency in the family for which you need urgent cash? Or do you want to shred off high-cost loans or credit card to get out of the debt spiral? And in addition to all these things, today the lifestyle that most of the people wish to live today takes away the major chomp of your savings, right? What about the savings that we must assign for our retirement or emergency fund? So, how a personal loan can help us with this? Or explain, what are personal loans India? Well, unlike a home loan or a car loan, a personal loan comes under unsecured debt, for which a lender does not insist on collateral. And being unsecured in nature, the risk for any lender would be high as they are left with the only option- i.e. legal to resort in case of a default. Hence the personal loans India crafted especially according to the Indian market, and are slightly higher than the ones which are backed by collateral.

Well, a personal loan comes really handy when your need for cash is urgent, and at times when you want to lower your overall debt burden, or even when you want to boost your credit score/CIBIL score. And because of its quick approval process, it is considered to be as an easy way to access funds. But whenever it comes to availing personal loan India, you need to be slightly cautious or you can say aware. This is because you might end up choosing the wrong financial product, and your mistakes can bound lenders to extend a personal loan at high-interest rates. Here, we will tell you what all you should weigh before you decide to sign the loan agreement.

Personal Loan India

Evaluate Your Requirement: Many financial pundits advise that one should not overboard with the loan amount. Well, we all know that personal loans India is an easy way to access funds and are often disbursed within a few days. And, this can make a tendency to go for a larger amount of loan than the actual requirement. So, one should limit the loan amount to what your end objective or purpose is.

Overall Cost: Continuing with the point mentioned above that one must consider the overall cost of the personal loan incurs on your pocket, which includes the personal loan interest rates and the additional fee. If the requirement that you have today is not worth the overall cost, then maybe it is not the wise move to take a personal loan. Try at your level if you can satiate those needs by any other means or not, like through credit card.

Interest Rates: There are two types of personal loan interest rates in the market, and the major thing to go through before approaching to a lender is to check whether the interest rate is fixed or variable. The fixed interest rate implies that it remains constant throughout the loan tenure and a variable interest rate used to change, i.e. increases or decreases according to the ongoing market conditions-index value.

Additional Charges: The accumulated interest is not only the only fees that are charged in a loan, but there are also other multiple additional charges associated with it. Additional charges such as processing fee (when the loan is being processed), late fee, and prepayment fee. Lenders charge a late fee when you are inconsistent with your monthly EMI’s, and pre-payment is when you choose to pay or close the loan amount before the decided tenure.

Choose One: See all and choose one, like they say that you have to kiss a lot of frogs before you find your prince. But in the personal loan India, kissing all the frogs can generate a problem for you. Hence, you should look at multiple loan options, deals and offers before choosing the one, through online loan aggregator’s site and then apply to the ones you feel that your loan can get approved on and can commit to.

Well, these are some of the common factors or things that one needs to consider before you get a personal loan India. If you keep these things in mind, you will never go wrong while borrowing the money.

Hope this information helps you!

Are you planning to take a personal loan? Avoid these few mistakes.

A personal loan is an ideal financial tool when it comes to mitigating your financial issues. There are many reasons to take personal loan India such as renovating your home, debt consolidation, medical attention, etc. however, you will have to consider a few factors before you avail it. You should avoid mistakes else it will make a dent in your wallet. So, here are five personal loan mistakes that you need to watch out for and avoid them.

Don’t Shop around

There are a lot of personal loan options in India; however, it’s not a mandate to pick the first one. Since you have options, you should compare deals amongst top banks & financial companies and shortlist the ones that will match your financial requirements and affordability. Go ahead and see if you have any pre-approved loan offers, as lenders will give you the best personal loan deals. You might want to consider things like interest rate, processing fees, disbursal time, repayment options and loan tenure.

Taking higher interest rates

It’s would be wise to see that if you’re taking a loan for debt consolidation, the interest rate should be low enough to save your money else it won’t make sense. You will find that a variable interest rate has its own negatives and positives such as it might rise in the near future as well. Keep the entire picture of average personal loan interest rate you would pay during the tenure and then decide if you should go for it or not. Else, you have a fixed rate on a safer note.

Personal Loan

Not calculating other charges

Personal loan India come with a lot of other charges such as processing fee, late payment charge, pre-closure charges, cheque delay charges, etc. The processing fee is a percentage on your loan amount, pre-closure is implacable if you close your debt early. Consider all these fees, and try to speak to the lender to waive them off. Consider all the fees that come with your personal loan, and then decide which one is the best offer for you.

Choose right loan tenure

We take a personal loan for a variety of reasons. Lenders offer flexible tenure of 1-5 years, and at times we’re happy to see a loan that gives lower monthly payment option. The deal might be great, but you would’ve to shell out more interest rates. If your goal is to get rid of the debt faster, short repayment tenure will make sense for you.

Fraudulent lenders

Due to the prevalence of online facilities, it’s easier to get loans at attractive deals. Lenders try to lure potential customers with low personal loan interest rates deal. However, with convenience comes the increased risk of falling prey to frauds as well. You should figure out lender authorization and only then approach them. Read reviews online and talk to a financial expert before you plan to avail loan form a particular lender.

Missing your monthly payment

It’s important you make your payments on time. Missing it will damage your credit score and would cost you late fees. If you’ve taken a secured personal loan, and you keep missing out payments, you might lose on the collateral pledged with the loan.

Here is how to get a personal loan quickly & easily.

For those who think it’s not easy to get a personal loan, think again! The internet has made things so easy that getting a personal loan is as easy as 1-2-3. Don’t believe us? Well, we will tell you how to submit your application in just a few taps & get sanctions in as little as two days!

Go online!

Jump traditional applications. Don’t waste your time visiting bank branches to compare quotes. Just go online and start comparing your options in seconds. You won’t need to take time out from work or move out of your home. All you need is your laptop, mobile phone or tablet.

Apply online.

Some borrowers compare online but still visit a branch to get a personal loan. Why do so when you can apply online as well? Just fill out the simple application, scan & upload your documents, pay the processing fees online and hit the submit button. Before you know it your application will be sent over for approval. If all is well, you can expect approvals in minutes!

Get a personal loan

Give apps a go!

Some of the new-age lenders have introduced apps through which you can get a personal loan in minutes. They will have completely app-based processes and extremely quick turnaround times. The documentation will also be extremely convenient and will usually consist of just 4 or 5 documents required; of which one would be a selfie!

Try aggregator sites.

This is probably your best option. You can use aggregator sites as well to get a personal loan. They will list the top 30 or 40 lenders in India along with their loan amounts, tenures & interest rates. This makes it easy to compare as you have all of the best options right in front of you, in one single page. You can also apply through these aggregator sites. In fact, most of them will provide you instant quotes and ensure that you get calls from lenders offering you’re the best possible deals.

They will also have calculators that you can use to ensure you are making sound decisions before singing along the dotted line and committing to the loan. These sites will also have unbiased reviews of the personal loans available today. These reviews will be written by real borrowers who have taken loans through these aggregator sites. This is extremely helpful as most reviews these days are fake and are posted by the bank or NBFC’s marketing agency to create a better online reputation.

So there you have it, some ways to get a personal loan quickly & conveniently, all thanks to the internet. If you are worried about online payments, just remember that these lenders are usually huge companies and they have full-proof firewalls & other precautions in place to keep your application safe. We hope this has been helpful, good luck and all the best. Always remember to read the loan documents carefully before agreeing. If you need more help, just get in touch with one of the lenders or aggregator sites today!

5 criteria you should use to compare personal loan providers.

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.

personal-loan
Personal Loan

3. Charges.

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.

4. Reviews.

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!

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