How to Get the Best Personal Loan Deal - Loan Trivia


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Thursday 25 July 2019

How to Get the Best Personal Loan Deal

When you apply for a Personal Loan, many factors come into play. These include your age, whether you are salaried or self-employed, your income, and your credit history. All of these affect the loan approval and loan terms. 

Comparing Personal Loan offers 

When You Compare Loan Offers, Look For Certain Features: 
  • # Try to find loans with the lowest interest rates. Generally, interest rates on personal loan fluctuate from 11% to 20% and higher 
  • # Look for offers that come with minimal processing fees. The processing fee could be a percentage of the loan amount or a flat fee. Look for banks with charges on the lower side, this reduces the cost of the loan 
  • # Check to see if there are any prepayments allowed 
1. Many lenders now allow borrowers to make a set number of partial prepayments on a loan without charging a penalty
2. If you get extra funds, you can use these allowed pre-payments to pay extra amounts over and above regular EMIs. You can reduce the interest rate on the loan and pay off the loan sooner
3. Make sure that if the lender charges a penalty for prepaying the whole loan, the charges are not too high
  • Check to see if there are any special offers for specific loan tenures. Some banks may offer special rates on loans for specific tenures 
  • If you are salaried and employed by a big company, some banks might offer loans at very favorable terms for you 
Must Read: Looking For a Personal Loan? Keep These Things in Mind

Factors Affecting Personal Loan 

  • # Whether You Are Salaried or Self-Employed - Self-employed persons may have to pay a higher rate of interest as they do not have a set source of income 
  • # Your Income - If you have a steady source of good income per month, banks look on your loan application more favorably 
  • # Your Credit History - If you have a good track record of loan repayments, you can get loans at lower rate of interest. Otherwise, banks might hesitate to provide you with a loan 
  • # Your Expenses - If you have monthly expenses that take up a good percentage of your income, banks might doubt your ability to handle the EMIs 
  • # Your Investments - Banks take good savings and investments as an indication of your financial stability 

Check Your Eligibility 

You can visit online loan portals or financial websites to assess your eligibility to get a good Personal Loan. Use a personal loan eligibility calculator to check the ideal loan amount you can borrow. Use this as a guideline and search for the best loan offers from various banks for the loan amount. 

You should also check your credit score to see if you have a score that is 750 or above. Generally, lenders look for credit scores in this range for unsecured loans. This ensures that you are trustworthy and have a good repayment record on previous loans. 

How to Get Best Personal Loan 

Once you're clear on your loan eligibility, search for the best Personal Loan offers from various banks and NBFCs. Note down a few that look attractive. Research each one to find out what additional fees and charges are involved. Find out about part-prepayment clauses and foreclosure charges. Choose the loan offers that come with terms that can bring down the total cost of the loan, and apply online.
You can easily get Personal Loan online now. The entire process is fast, easy, and transparent. Go to the lender’s website, navigate to the Personal Loan for salaried or Personal Loan for self-employed page, and start by clicking the ‘apply for loan now’ button.
Must Read: Pros And Cons Of Instant Personal Loan

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