A financial crisis is a distinct possibility for anyone who is unable to fulfil major expenses. Most public and private sector banks and non-banking financial companies (NBFC) offer personal loans at affordable rates. Such loan products are ideal for financial aid as minimum documentation is needed since the loan applicant is exempt from submitting collateral security.
However, it is quite difficult to identify the best quotes on personal loans. There are many tools such as eligibility evaluator to EMI calculators that can help you compare a bunch of personal loans options within an hour. Here are some tips to get the right personal loan quote for you.
Do product search
It is clear that doing good product research will eventually decrease the probability of loan burden while repaying it. This is crucial as personal loan come with a higher rate of interest. So, if you choose a loan option with the uneconomical interest rate it would increase the interest payout. We understand it may be hard to do it when you have less time at hand as you have to deal with financial crisis, but it does not really take much time. There are many loan aggregating sites that offer personal loan options from all loan lenders in the market.
Do a quick profile assessment
The chances of your loan application getting approved depend on your eligibility for a personal loan. Hence before even doing the product search, it is wise to do a profile assessment. Personal loan is a unsecured loan product which means it counts your economic status and financial credibility as the guaranteeing factor. Hence it would be better if you just check your credit score, aka CIBIL score, before you opt for a loan option. Typically, a person employed in a reputed firm or a well-sustaining business owner gets better loan quotes as their loan repaying capability is higher.
Choose the lender right
You may want to apply for a personal loan from the first loan lender that you come across, but it is important to choose your lender right. Most borrowers choose between public or private banks and then zeroes in on whoever offers better loan quotes. But surprisingly, NBFCs also give better credibility benefits and services compared to major players in the markets. Although most loan lenders offer reduced interest rates on personal loans, some lenders also offer an extension on borrowing limit and concession on processing fees.
Right EMI, tenure options
Those opting for personal loans choose longer tenure to make repayments more manageable. However, while repayments may be smooth, you may end up paying higher interest amount even though can afford to repay the total loan amount within a shorter tenure. Hence it is wise to choose a tenure period as per your financial situation such that the urgent fund borrowing would be a burden that you can manage easily.