Tips for selecting the best Personal Loan lender

[Shashank Bhaskar]

Everyone aspires to improve their quality of life. This involves getting a home, car, luxuries items, etc. But they get constrained by their financial status. If you face a similar struggle, there are several credit options for help. They lend you the required funds to realise your desires. The most famous avenue is a Personal Loan as it comes with flexible terms, no collateral requirement, and unspecified use. This makes it attractive to finance various needs.

But like other credit options, Personal Loans involve interest payment. This is the charge you pay against the Loan amount. When you search for them, you get exposed to a lot of attractive quotes. Every bank claims to have the most relaxed eligibility criteria and repayment terms. While this may be true, its authenticity depends on the lender. Hence, it is essential to choose the right bank that matches your requirements. Here are some of the ways to do that:

Compare interest rates

The preliminary step in shopping is research. We follow this while buying any valuable commodity. The same principle is applicable for Loans. Lender market quotes attractive rates. This provides you with vast choices to compare offers and get the best Personal Loan interest rates. Use this opportunity to compare deals months before applying. Apart from the quoted offer, ensure to check the interest application against eligibility.

Evaluate reputation

As the monetary aspect is involved, lenders evaluate your profile to judge your Personal Loan eligibility. You should adopt the same practice to assess their credibility. You get resources for the same online. Some of them include reviews, Loan policies, overall costs, records, brand image, etc. Ensure to follow this step to check the authenticity before grabbing onto any lucrative offer. This helps you get the best rate.

Read the fine print

Everything you need to know gets mentioned on the Loan documents. From the applicable interest rate, borrowable amount to tenure, every information gets stated on the agreement. The same gets mentioned on their respective websites and banking apps. Hence, ensure you read and understand these documents for clarity. In case of doubts, consult customer care to avoid future discrepancies. You also get clarity on the terms by using an EMI calculator.

Check charges

When you apply for Loan, it goes through multiple stages. This involves application, documentation, verification, and disbursal. All these stages involve formalities that result in expenses for the lenders. They recover these costs by passing them to you as penalties and charges. They typically levy processing fees, late payment penalties, pre-payment charges, verification expenses, administrative costs, etc. Since they add the Loan cost, you should check them carefully.