Overview

A personal loan can help you get started on the right foot if you’re looking for ways to improve quality of life. Instead of tapping into your funds, utilise this loan to pay for a better equipped property, a dream vacation, or course fees. Rather than waiting till you can save up, why not take advantage of the best today? You must choose the correct lender to ensure that an immediate personal loan is feasible.

Take a look at these pointers to help you better evaluate lenders.

Examine Your Requirements

In the credit market, knowing what you want is incredibly important. You will need to go to the right lender based on your requirements. For instance, if you need a home loan go to a home loan lender . If you need a personal loan go to the best lender in that category. As a result, before you narrow down your decision on a specific lender, you must conduct thorough market research on the type of loan product, type of lender (small or large), type of interest rate (fixed or floating) etc Since each borrower’s circumstance is unique, it is critical to pick the one that best meets one’s requirements. 

Know Who Your Lender Is

Thorough research can save you a lot of time and aggravation in the future! Regardless of what you have heard about the lender, it is critical that you conduct a thorough background check on him right away. This will save you a lot of trouble in the future. Make sure that, in addition to conducting a web search of evaluations on various borrower’s forums, you obtain the contact information of previous clients and contact them directly.

Be Wary Of Marketing Ploys

Don’t judge a lender by their glitzy advertisements, just as you shouldn’t judge a book by its cover!

Don’t be fooled by the appealing titles of loan adverts. More than amazing interest rates, these uncertain times have taught us that your greatest interest resides in a lender who will work closely with you to find out the best deal for you and will be there for you should things become rough. As a result, plan ahead of time, demand clear responses, get financial projections, and follow up on all clarifications. There should be no unexpected events along the road.

Personal Loan Interest Rates Must Be Compared

You must first determine the type of personal loan that best suits your needs before beginning the application procedure. Traditional banks and non-bank financial companies (NBFCs) are among the lenders, all of whom offer various interest rates. Keep in mind that each personal loan application lowers your CIBIL score slightly. As a result, submitting your personal loan application should be the last step. To begin, compare loans, contact lenders, and gather all relevant information.

Examine Your Loan Amount

Depending on your requirements, you may or may not be aware of the exact amount of money required. Choose a lender who will provide you with a large loan amount that will meet all of your expenses. You might also choose a lender with more freedom. Some lenders offer loans that allow you to withdraw funds in instalments as and when you need them.

You simply have to pay interest on the amount you use, and you can pay an EMI that only includes interest. At the conclusion of the tenure, you can refund the principal. This form of loan is great for restoring a home. For instance, if you need to make recurring payments of variable amounts to various service providers and aren’t sure how much money you’ll need all at once.

Pay Attention To The Fine Print

The terms of your personal loan will be spelled out in a legal document provided by each loan provider. As a result, you must ensure that you read the fine print and understand your responsibilities. Make sure you understand and agree to all of the terms and conditions associated with personal loans. If you have any questions, you should contact the lender for clarification. Because this contract is legally binding, be sure you understand all the terms.

Processing Fees Should Be Taken Into Account

Lenders levy a processing fee of 2% to 3% of the loan amount, excluding GST. This payment will be deducted from the total loan amount you will receive. Find out how much the lender will charge you to process your loan and then determine whether it is affordable before applying. Check all the other charges that are related to it as well.

Prepayment Fees And Penalties Should Be Checked

It’s a good idea to use any extra money to make partial prepayments on your loan. This will assist you in paying reduced interest rates. However, some lenders have strict prepayment policies that come with substantial penalties. So, learn what they are and what the minimal prepayment amount is. This will assist you in determining if you will be able to repay the loan fast or not.

Thus, before choosing a moneylender, make sure that: 

  • You have thoroughly researched all of your possibilities and are confident in your decision.
  • While low-interest rates are advantageous, keep in mind that they are not the only advantage of a loan, particularly one with a long term period.`
  • Don’t forget to read the fine print to see if there are any hidden fees or charges. Make sure your lender has a strong customer service department that can respond to your questions and clear up any misunderstandings you may have.
  • Overall, by the time you sign on the dotted lines, all your questions should have been answered and all your uncertainties should have been cleared up. Other than the obvious, “When do I get the money?” you should have no remaining questions at this point.
  • Trust your instincts! When it comes to your finances, it’s critical to trust your intuition. So, if you’re feeling uneasy about anything, trust your gut.

LoanTap is a trustworthy lender that makes smart use of technology to provide you with a quick, seamless, paperless experience that exceeds your expectations. You can get a personal loan between Rs 50,000- Rs10,00,000 for periods ranging from 6 months to 60 months. Interest rates start at 18% p.a. A slew of repayment plans are available and you can pick the one best for you. You can foreclose the loan after 6 months without any prepayment penalty. For all your personal loan needs, you just need to visit https://loantap.in/. Go with the best and we will do the rest.

Related article – Why are FinTechs a better option for availing loans?

Personal Loan
Top line
Satyam Kumar is banking industry veteran with enriched experience of more than 20 years. Apart from founding LoanTap and FinTech Association of Consumer Empowerment, he is an avid traveler and holds keen interest in Blogging. He has amassed profound knowledge in FinTech trends, banking, consumer trends, food and mythology which he loves sharing with others.
Satyam kumarSatyam KumarCEO & Co-Founder, LoanTap asset 8 asset 9
Bottom line