Today, taking personal loan in India has become deceptively simple and alarmingly confusing at the same time. Of all possible loans, Personal Loans showcase this weird characteristic the most. Even to decide that you need a Personal Loan can be a task. But once you do decide, there are still enough factors you should consider and check out before closing on your loan. Read on to have a check list of eight such factors before choosing your Personal Loan.
1. Loan Amount
This is one of the most basic things you should know for sure before applying for a Personal Loan. The lesser you borrow, the quicker and more easily you can pay off your Personal Loan. Under ideal circumstances, you should borrow only the most essential amount, while making other arrangements for the rest.
2. Interest rate
Interest rates impact your instalment amount and sometimes even the length of your repayment period. Today, there is a wide spectrum of providers with an even wider range of interest rates available. You should do your research to find the best interest rates.
3. Repayment period
Repayment period is the term over which you pay off your principal and interest component. It is ideal to keep repayment period as short as possible. However, the trade off is that as you reduce your repayment period, the monthly instalment amount keeps going up.
4. EMI
EMI or the monthly instalment amount is one of the most important numbers you should keep in mind when you apply for a Personal Loan. In a way, it is a culmination of the first three pointers — loan amount, interest rate and Repayment period. Check out this loan calculator so that you have an idea of the EMI that you can comfortably pay. Tweak any of the three factors to see how it impacts your EMI and close it at the amount that you are comfortable with.
5. Prepayment option
Many times we are struck with a windfall and the first thought of fruitfully utilising that money is often to repay outstanding loans. While RBI has mandated a zero prepayment charge on Home Loans, most Personal Loan lenders charge you if you look to pay off your loan prematurely. Check on the charges applicable on prepayment before you apply for a personal loan.
6. Credibility of lender
There was a time when banks with umpteen branches were the only lenders from whom you could borrow without a worry. However, today there are simpler and more convenient options like Money Viewavailable. Whoever the lender that you choose to borrow from, ensure you do a credibility check to see that it’s not a fly-by-night operator. Read these inspiring stories of people who benefitted from Personal loans disbursed by Money View Loans.
7. Disbursement time for loan
We often need loans in a hurry. For instance, you have planned your house warming celebration and some last minute home decoration work is going on. Suddenly, your contractor informs you that the funds were not enough and additional money will be required to complete the work. At such moments, the speed with which your lender can disburse the loan is of utmost importance. Money View, for that matter, disburses loans within a few hours after approval.
8. Loan process simplicity
With most banks, you need to submit a lot of documents to be eligible for a loan. These documents range from Identity Proofs to Pay Slips and Income Tax Returns. On the other hand, a lot of new age providers have done away with clunky processes especially if your loan amount is smaller. For instance, with Money View, you can simple check your eligibility and simply submit your application through the app for a loan amount anywhere between Rs. 10,000 to Rs. 5,00,000.
Learn all about the Money View loan process and any other questions that you may have before choosing it as your Personal Loan lender. Is there anything else that you have considered before borrowing a Personal Loan? Let us know in the comments below.
This article was originally published on Money View Blog.
