Personal loans, known for featuring reasonable interest rates and flexible repayment tenure, are becoming the best solution to meet financial needs for big purchases and unexpected expenses. With many online loan providers, applying for and getting your loan sanctioned is getting easier. However, it is still recommended to go for a personal loan comparison to secure the appropriate loan for your particular financial needs and enjoy cost savings.
Here are some important factors you must take into consideration when evaluating multiple options for personal loans.
Top 7 Factors to Consider During Personal Loan Comparison
- Interest Rates
One of the most important features to consider is the interest rate as it directly impacts the cost of borrowing. Moreover, comparing the interest rate determines the overall loan expense and helps in securing the lowest rate possible. The lower interest rates come with lower monthly installments and decrease the interest pressure. So, compare multiple loan offers available online ensuring you get the most competitive interest rate based on your credit score.
- Eligibility
You will not be able to secure a loan if you don’t fulfill the eligibility criteria. So, determine the eligibility requirement of your lender, which consists of employment status, income, age, credit score, etc. Select a lender whose eligibility requirements best align with your financial status to improve the likelihood of getting your loan approved easily and quickly.
- Loan Amount Range
Some banks and lenders have certain minimum and maximum limits for the amount you can borrow. However, you must ensure that the loan amount suits your financial requirements. Evaluate the loan amount offered by different lenders to make sure you don’t need to compromise on your financial needs. If you need more funds, find a lender that can accommodate you. However, if you need a small amount, avoid borrowing more than a considerable amount as it may prove expensive in terms of interest.
- Repayment Duration and Flexibility
A loan term or length is another considerable factor as it helps in ensuring that you will comfortably repay the loan without affecting your budget. It is common to get personal loans with a repayment duration of 2-5 years. However, some lenders can extend this duration to up to 7-10 years.
A short repayment tenure might mean a higher monthly payment but could end in paying less in total interest and becoming debt-free quickly. On the other hand, longer tenure may have fewer monthly installments but could result in paying higher interest rates due to the length of time.
It is recommended to look for options that enable you to select a tenure that best aligns with your financial condition. For example, the option to select the repayment frequency, modify the EMI amount, or facility for foreclosure or prepayment without heavy penalties.
- Credit Score Required
Applying to multiple lenders at the same time can negatively affect your credit score. Banks and lenders check the credit history of a candidate during the application process. Multiple inquiries can signal financial distress. So, attentively evaluate and compare your credit score before submitting your loan application.
Choose lenders who provide pre-qualified or pre-approval loan offers based on a soft credit inquiry. This will help you avoid negative impacts on your creditworthiness. Remember that not every lender lists their minimum credit score. So, you must email or call them to understand the score before applying for a loan and save your time.
Also Read: Top 10 tips to improve your Cibil Score?
- Loan Fees and Charges
When comparing multiple loan options, it is important to consider various associated fees or charges other than interest rates. Pay attention to late payment fees, processing charges, administrative charges, and prepayment penalties related to the loan. Extra fees other than interest rate can impact the overall borrowing cost. Therefore, compare the fee structures of a lender and ensure they have transparent terms and minimal fees.
- Extra Features or Benefits
Alongside the abovementioned parameters, there are some more features that you must pay attention to when comparing multiple loan options. For example, look for a provider that offers amazing pre-approved offers for better terms.
Moreover, ask how much time your loan approval process will take and when you can expect to get your funds. If you are in urgent need of funds, you can contact a lender who provides a decision in a few minutes and let the amount be deposited as soon as possible, mainly during the following working day.
You can also choose a provider that offers a rate discount for certain important actions on your end such as autopay. When you have problems getting a loan by yourself, you can select a lender that provides the chance to use a co-signer or co-borrower. Also, don’t forget to examine the quality of customer support and service. Make sure that the lender provides prompt and valuable customer support for difficulties encountered during the loan tenure.
EverydayLoanIndia: Your Ultimate Partner to Get Customized Personal Loan
Do you have an urgent need for a personal loan but don’t have time to compare multiple loan providers? Contact us at EverydayLoanIndia and get a loan tailored according to your requirements. We will help you get the required funds with easier borrowing, no prepayment, and reasonable interest rates. The entire application process is simple and secure to avoid our client’s hassles. Moreover, you’ll get real-time updates of your loan status. Our responsive customer support is always available 24*7 to assist you with your queries and concerns.
Wrapping Up
A proper and effective comparison of personal loans can help with great savings and a manageable repayment schedule. Thus, if you want to get the most out of your loan, it is essential to review all the essential factors as mentioned here. It will help you to ensure that you will get the best deal customized for your financial requirements.
