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4 Tips for Choosing a Personal Loan that is Right for you

· Finance,Personal Loan,interest rate
Personal Loan

According to the data published by MoneyTap, personal loans grew at a rate of 20.4% from February 2017 to 2018. The collateral-free feature of a personal loan makes it a viable option of availing credit, which may also be accredited for its growing popularity among borrowers.

Though it is a popular credit option and many lenders are offering quick personal loan at competitive rates, borrowers must ensure the personal loan they are availing is suitable for them.

To make the process less cumbersome, use these 4 tips to choose the best personal loan –

  1. Compare interest rates

Decide on a personal loan by comparing it with other options of the same category. Pay special attention to the rate of interest charged on the principal loan amount. Because the interest accrued on the loan amount is a decisive factor when it comes to your EMIs. After all, the lower is the rate of interest; the better it is for the borrower.

2.Review associated fees

Choose the ‘right’ personal loan only after you have learnt about the related fees and charges that accompany the loan. Look for the following before applying for a loan, so that you are better equipped to bear them.

  1. Processing fee.
  2. Secure fee.
  3. Statement charges.
  4. Bounce charges.
  5. Penal interest.
  6. Maintenance charges.
  7. Foreclosure charges.
  8. Prepayment charges.
  9. Outstation collection charges

3.Quick processing with minimum paperwork

Look for a personal loan that can be availed online and comes with the need for minimum documentation. A quick personal loan disbursement and the need to file fewer documents come handy when a borrower is in the need for immediate funding.

 

4.Substantial loan amount

Not every lending institution offers sufficient loan amounts to the borrowers; this often does not allow them to fulfil the purpose they availed the loan for. Opt for a reputed lending institution that offers substantial loan amount.

Besides these, pay close attention to other vital features like a flexible tenor and a reasonable rate of interest. Take a pick only after you have covered all the essential aspects.

Must Read: 4 Tips For Choosing a Personal Loan That is Right For You

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