Your salary slip qualifies you not just for credit cards but also for unsecured loans, the biggest example of which includes personal loans. Over the past few years, the payout of such loans has increased considerably as apart from conventional lenders, a number of other lenders, including financial institutions, such as NBFCs (Non-Banking Financial Companies) have now started offering personal loans at very attractive interest rates.
However, before you set out to apply for a personal loan, there are a few top tips to remember, a few of which are as follows -
1) Lender
Choosing the lender carefully is very essential. This is because there are many lenders who will send you texts and mails stating that they provide the lowest rates of interest. Instead of blindly going by the claims of the text, you should instead ensure that you compare various lenders and their interest rates on your own before choosing the final one.
2) Rate of Interest
No matter what the interest rate is, always ensure that you calculate the EMI amount using personal loan calculator which you need to pay before applying. Interest rates are of two types - fixed and floating. In fixed interest rates, as the very name suggests, the interest rate remains fixed throughout the repayment period.
In floating rate of interest, on the other hand, the interest rate keeps changing in accordance with the market conditions and as a result, the installment keeps changing. To have a better idea of how your monthly installment will be like, you can make use of a tool known as the EMI Calculator.
Read Also: 5 Rules to Follow When you Take a Personal Loan in India
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