A personal loan can put an end to a lot of financial worries. Many believe that personal loan eligibility criteria are relaxed, and one can get a loan approved in a matter of a few days. While it could be true, the authenticity of these claims also depends on the right lender. When choosing a loan, it is crucial to look for the following characteristics in the loan provider:
Minimum and maximum loan amount
Depending on an individual’s financial needs, it is essential to opt for a lender that can offer the required sum at a reasonable rate of interest. Some lenders offer higher loan amounts at no collateral or security. One must compare rates offered by various loan providers before deciding on a loan.
Processing time and application process
The quicker the loan gets approved, the better it is. Choose a lender that does not delay the process by adding unnecessary steps and demanding a long list of documents. A personal loan should ideally be sanctioned within 72 hours after submitting the documents listed as under:
- Statements from the applicant’s bank for the last three months
- Income slips for the last three months
- Documents of address and identity proof
Flexibility of repayment
Life can throw curveballs unexpectedly. It is, hence, essential to choose a lender that allows a flexible repayment schedule. Try to look for a loan provider that offers the options to increase equated monthly instalments or EMIs with time. It is also essential to choose a lender that does not charge any extra fees for prepayment of the loan.
Additional Reads: Tips to Repay Personal Loans Without Affecting Your Wallet
Rate of interest
This is perhaps one of the primary deciding factors when picking out a lender. Personal loan interest rates can differ from one lender to another. Some banks and non-banking financial companies (NBFCs) also charge elevated hidden costs like processing fees, etc. One must conduct a thorough survey of the market and then decide on a suitable lender with the most attractive interest rates.
Brand value and trustworthiness
When it comes to matters involving money, the credibility of the loan provider plays an important role. Just the way the lender does a financial check on the applicant, the applicant, too, needs to verify the reliability of a lender. One must check for online reviews, loan policies, overall costs, etc. before one decides to apply for personal loan. It is always advisable to stick to reputed names in the market.
Additional Reads: Tips to Improve Credit Score for Personal Loan
Personal loans offer people a lot of conveniences and can be used to meet many varied expenses. However, to make sure that the loan does not turn into a financial nightmare, one must pick a credible and known lender.
If you are looking for an instant personal loan, you should consider Tata Capital. With interest rates starting from 10.99% and loan tenure of 12-72 months, you can cover all your urgent financial needs easily.