5 Personal Loan tips for everyone

Personal Loan is one of the best offerings when it comes to availing credit from bank or NBFC. A Personal loan can be used to manage both planned and unplanned expenses. Getting a personal loan no longer is a hassle especially in this digital era. Earlier, getting a personal loan means you will have to walk to the bank numerous times. Now, you can apply for personal loan from the comfort of your couch and get the loan approved within a hour. Fast processing, minimal documentation, and instant disbursal are some of the advantages that you get by applying for personal loan online. There are some Personal Loan tips that you may not have heard about. In this post, we are going to share them and reveal how they can help you.

Take a Loan only when it’s necessary

With all the offers and exciting personal loan deals that we see in this digital age, it is very easy to be lured by these exciting deals. However, you have to remember, though it is easily available, the interest rates of personal loan are higher than other loans. So, it is important that you apply for personal loan only when it is necessary. You will have to pay a monthly EMI for certain tenure till you have repaid the loan amount with interest. This will take a lot of time, effort, and money. So, avail personal loan only when you do not have any other options around.

Know about Additional Charges

If you think you will only repay the amount that you’ve taken from the bank, then you could not be more wronger. Apart from the interest component that comes with the loan, there are other charges that the borrower must take note of. Processing Fee, GST Fee, Verification fee, Late Payment Fee, and Pre-closure fees (penalty for completing the loan within the given tenure) are some of the charges that you have to factor in as well

Go for a Shorter Tenure

There are many banks and NBFCs that provide longer tenure. However, the catch here, the longer you tenure is, the more you end up paying. In order to avoid paying extra, you will have to go for a loan with a shorter tenure

Having a Good Credit Score

It is something that is not known to everyone. A credit score is a numerical figure from 300-850 which determines the creditworthiness of an individual. Most banks expect the borrowers to have a credit score in excess of 750+ in order to sanction a personal loan. Banks usually reject the personal loan application of individuals, who have credit scores less than 750. You can check your credit score here.

Compare lenders

There are legions of lenders available in the market.  To get the best deal on your personal loan it is essential to do a thorough research while selecting a lender. It is difficult to shortlist one by visiting every websites. In such case, loan aggregator sites like Fincover may be your best bet to pick the right loan. Fincover.com offers a platform which will allow you to compare personal loan quotes from multiple lenders. Using this feature you zero in on the best loan available in the market that fits your requirement.

So, if you are planning to go for a personal loan, it is important that you consider these tips as they would help you get the best deals on your personal loan.