A personal loan, when used for the right reasons, bolsters your finances by providing ample support. Due to its unsecured nature, you are not required to pledge any collateral, and hence, you can even get a personal loan online. Your only task is to choose an offer that best suits your financial profile. Given the number of lenders and attractive offers to choose from, this is no easy task.
The first thing to consider is the sanction. Shortlist all potential offers based on the loan amount offered. To further narrow it down, here are a few tips to employ when comparing personal loans online.
Check For Any Additional Fees and charges that are applicable
To choose the best personal loan, it is imperative that you check the fees and charges that apply. It isn’t uncommon to find an incredibly attractive offer that comes with high charges and you should be aware of this before you decide on the loan. To help you know what to look for, here are some of the personal loan fees.
- Processing fee
- Bounce charges
- Secure fee
- Penal interest
- Statement charges
- Outstation collection charge
- Foreclosure charges
- Prepayment charges
- Maintenance charges
As you may notice, most of these fees will apply over the course of the tenor, with some occurring only if you default or delay your repayment. Nonetheless, it is important to know about these so that you are not caught off-guard. A particularly important fee to keep in mind is the processing fee as these are deducted as a percentage of your sanction, right at the beginning, before disbursal.
Inquire About The Personal Loan Eligibility Criteria
Besides the personal loan interest rate, you should also check the eligibility terms and conditions followed by lenders. Opt for a lender who has relatively relaxed criteria, as this reduces the effort you need to put in to access funding. Tough criteria and long-winding procedures can lengthen the loan acquisition time frame. The criteria vary from one lender to another. However, there are some standards that you must be aware of to qualify for a personal loan.
- You must be between 23-57 years of age.
- You must be a residing citizen of India.
- You must be salaried and meet the minimum annual salary requirement of the city you live in.
Additionally, the documents required further prove your eligibility for the loan. Therefore, you should furnish updated documents when applying for a loan. Generally, the documents that you require are:
- Passport-sized photographs of the applicant.
- KYC documentation: Aadhaar card, PAN card, passport.
- Bank statements: 3 months prior, at least.
Apart from this, there may be other documents your lender may require from you, so check the list of paperwork required before you apply.
Use a Loan Calculator to Secure the Best Personal Loan Interest Rate
To pick a personal loan that suits your finances, you must use the personal loan EMI calculator and check if the lender’s interest rate and the total interest you need to pay aligns with your goals. The calculator accurately computes your EMIs, total interest, and total repayment; and all of this helps you narrow down a cost-effective offer. So, compare personal loans online before settling on an option, to ensure you get the maximum benefit.
Evaluate Additional Loan Features
Besides a high loan amount and a low interest rate, you should also look for additional loan features. These features add value to your overall borrowing experience and may even save you some money. For example, a unique offering by lenders like Bajaj Finserv is the flexi personal loan. Thanks to this facility, you can borrow from your sanction in parts, multiple times and pay interest only on the amount you utilise. This comes in handy if you’re faced with an emergency and need extra funds that you couldn’t predict earlier. It also negates your need to apply for any additional loans. What’s more, you can pay interest-only EMIs and repay the principal at the end of the tenor to save up to 45% on EMIs.
All these tips are sure to help you pick a loan that best suits your needs and repayment ability. One such option is the Bajaj Finserv Personal Loan. With it, you get access to much more than just a competitive interest rate. It allows you to access ample funding of up to Rs.25 lakh with ease, as it has lenient eligibility criteria and requires minimal documentation.
You also get access to an online loan account, which allows you to manage and track all your loan-related details through one convenient portal. This also allows you to check your statement of account and even prepay your loan at any time in a hassle-free manner. You can also visit the website and check your pre-approved offer. This gives you access to a customised loan offer and allows you to benefit from instant approval.