Criteria for personal loan comparison & tips to find the best one!

You can have countless reasons to opt for a personal loan! In most cases, people hope for such financial aid to manage emergency medical expenses or to host a wedding. Some aspirants also apply for such loan instruments to consolidate the debt or even to pay recurring credit card bills. You can even use such funding options to pay for a domestic or international tour package. Luckily you don’t have to state or convince any loan lender as to why you are borrowing funds for. You just have to do the personal loan comparison right and apply for it!

Such unsecured loan offer many benefits over other types of loan products. As per the principle, the processing time is less on such loans and you are not conditioned to submit any collateral security. Fortunately, there are many financial institutions that lend instant personal loan, so you could many options to do the personal loan comparison. And to make sure you chose the best loan product, you can evaluate different personal loans on the following basis.

Start with choosing right loan lender:

Since most of the public and private banks and Non-Bank Financial Companies (NBFC) now offer you affordable personal loan options. But it can be hard to compare and pick the best loan product that meets your needs, as you need to thoroughly study the loan product and its feature. And to save some time and efforts in personal loan comparison, you can choose a loan lender that takes less time to process the application and disburse loan amount quickly. While most the public banks take 2-3days to process working days and a week to disbursement. Most NBFCs take 1-2hours to process the application and a day or two to disburse the loan amount. Choose the loan lender as per the urgency of the financial aid.

Personal loan comparison is all about rate of interest:

Most of us just focus and compare interest rates on personal loan products offered by multiple loan lenders! Some people just pick a loan product that has the lowest rate of interest and call it a day. But there are other factors you need to mind before applying for a personal loan. We get it, you have to pay the amount of interest while repaying loan amount! But you also have to pay for the processing fees on the loan application. It is wise to compare Annual Percentage Rates (APR) on personal loan products.

Loan lender that offers a reduced rate of interest!

Some people would stop their personal loan comparison drill as they find out the interest rates on such loan products are higher. Not many aspirants know this fact but a loan lender could offer a reduction in the rate of interest if you have a decent CIBIL score to your name. Never undermine the importance of a good credit score as it can give you eligibility to negotiate some terms with the loan lender. This brings us to the first point we mentioned, find the right loan lender.

Mind the loan repayment options:

If you are doing your personal loan comparison task right you would notice most loan lenders keep the option to repay the total loan amount even before the tenure period ends. But most banks charge around 2% to 5% fees on such repayment arrangements. Although you know your financial planning well, it would be good to have such options to consider.

An individual can be efficient in dealing with most problems, but financial emergencies can be a nightmare at times. You might need some urgent funds to manage medical bills, host a wedding ceremony or to manage other expenses as soon as possible