Short-term unsecured credits like personal loans grew at a rate of 15.7% (as of April 2019) across India, according to a recent report by Business Standard. Such credit growth indicates the need for financial assistance, especially amongst individuals facing unforeseen incidents.
Individuals can apply for an instant personal loan and acquire funds to tackle such emergencies. This is possible because of the no end usage restriction for using loan amount. Borrowers should also look for the best options for a loan so that they can reap maximum benefits from the advance.
However, selecting the best loan may prove overwhelming, as prospective customers are likely to face so many choices. Fortunately, there are certain factors that one should look for while selecting a particular line of credit, ensuring they choose a financial product that best meets their personal requirements. Let’s take a look at some of those.
Factors to look for in best scheme for a personal loan
- High loan amount
The loan amount is a crucial factor and borrowers must look out for options that offer them high-value loans. Seeking a high-value personal loan in India becomes integral especially when a substantial fund is required. Some financial companies can offer customers a loan up to Rs.25 lakh against affordable rate of interest; these can prove adequate to meet any financial obligation.
- Flexible tenor
Choosing the right tenor is important for the borrower as it can ease loan repayment. Long tenors result in smaller Equated Monthly Instalments (EMIs) that are easy to pay. A short tenor will result in higher EMIs but the loan will be repaid quickly. The overall cost of the debt will also be lesser for a shorter tenor.
Borrowers should find the right personal loan tenor that works for them and choose a lender that offers the flexibility of selecting a suitable tenor. It is a wise financial decision that will ease the repayment and help save money during the loan tenor.
- Competitive interest rate
Rate of interest can affect the total outgo of a loan, and hence borrowers should thoroughly research the applicable rates before applying for a particular personal loan lender. Also, customers can improve their chances of availing a lower rate of interest by improving the CIBIL score and showing all sources of income. It will improve their creditworthiness, and lenders will be more likely to offer them a better rate of interest.
- EMI calculator
It is essential for customers to pre-plan their loan repayment so that it doesn’t put any unnecessary financial burden on their budget. In this regard, customers can use a personal loan calculator to find the ideal scheme and repayment plan before availing a credit.
These online tools can be utilised to evaluate the EMIs they will need to pay for a specific loan amount and tenor as well as the applied rate of interest. Borrowers will be able to plan their financial obligations in a better way with this calculation. They can use a personal loan calculator by inputting the value of loan amount, tenor, and rate of interest.
- Easy availability
Ease of availing an instant personal loan is an equally important factor. Choosing a financial institution that offers them quick approval and disbursement, as well as easy to meet eligibility criteria and application process will ensure faster availability of a credit whenever required.
Non-banking financial companies like Bajaj Finserv offer pre-approved offers to their existing customers that simplifies the application process. Such offers are available on several secured as well as unsecured financial products such as personal loans, home loans and business loans. Borrowers can check their pre-approved offer by sharing their name and contact number online.
- No hidden cost of the loan
Most lenders charge customers with a processing fee, along with other costs of the loan that a borrower has to pay over the repayment tenor. It is necessary to choose a financial institution that remains transparent about the cost involved in a credit, as well as charge nominal fees to keep the total cost of lending to a minimum.
Individuals can apply for an instant personal loan by financial companies that offer the features and benefits mentioned above so that they can get the best scheme that fulfils their monetary requirements. These loans can offer substantial backing to mitigate any financial shortcoming.