How To Choose The Best Personal Loan In A Few Steps?

A convenient financial resource that offers funds to finance your emergencies, a Personal Loan offers the freedom to get the sanctioned amount, with no collateral, at a lower interest rate and longer tenure. As easy as a personal loan may sound, it is important that you choose the best personal loan before signing up for one. Let us help.

Steps to Choose The Best Personal Loan

There are thousands of digital lenders like Fullerton India which offer personal loans offline as well as online, but based on your requirements, it is important to choose the one which suits you best. These steps will help you make the right choice:

1. Sanctioned Amount

All the lenders mention the maximum personal loan amount that one can get. However, based on your eligibility, the maximum loan amount one can avail may vary for each individual. Thus, it is important to have a fair idea of what your requirement is and what the lender is offering. Once you have this information, you will be able to make the right choice for the best personal loan.

With a Fullerton India instant personal loan, you can get a loan of upto Rs 25 lakhs* with quick disbursal. Use online personal loan eligibility calculators to know how much loan you can take based on your income and monthly obligations.

2. Rate of Interest

For personal loans, there is no fixed interest rate and it varies based on the financial institution you are borrowing from. The rate offered to you will depend on the lender’s policy as well as your credit profile and other parameters.

However, make sure you do your research well, and compare personal loan interest rates of different lenders before making a choice. Even a small difference can reduce your repayment amount.

You can get Fullerton India instant personal loan at interest rates starting from 11.99%. You can use the personal loan EMI calculator to get an estimate of the monthly EMI amount for a given interest rate and loan amount by varying the tenure.

3. Eligibility Criteria

For easy access to funds and fast approval, choose a lender with simple eligibility criteria. The requirements about your work experience, age, credit score and nature of employment should suit your profile, so your application can have higher chances of approval.

Fullerton India has simple eligibility criteria where the resident Indians between 21-60 years of age, earning a minimum of Rs 25,000 – 20,000 per month can apply.

4. Associated Charges

Apart from interest rate, lenders also have additional charges like processing fees, insurance, service charges, and so on which will affect the loan amount that will be credited to your account as well as your monthly EMI.

5. Repayment Flexibility

Some Personal loans come with a prepayment facility, where you can repay your loan amount before the designated tenure. However, there may be fees involved in this option. Also, some lenders may allow foreclosure, but not part-payment of loans. It is advisable to go through your lender’s website and understand the terms and conditions thoroughly.

6. Check and Compare

Now that you have all the details, it is important to compare all the parameters of each lender and then accordingly choose the one which best suits your requirements. Refrain from applying with multiple lenders at once, since it will affect your credit score.

While all the above factors are important to check before applying for a personal loan, also look for some additional services or benefits that lenders might offer you. It is also a good idea to consider any special offers which lenders may be providing. Once you are completely sure about your choice, apply, and begin your journey to financial freedom.