Keys To Finding A Responsible Lender

Borrowing a personal loan has become quite simple in recent years. All lending institutions in India offer personal loans, whether you are their customer or not. Interest rates and other terms and conditions may vary. However, the personal loan product has broadly the same benefits whether you borrow from one lender or another. It still features the benefits of quick disbursal and freedom to use the money for whatever purpose one sees fit.

But not all lending institutions in India are equally good, and hence, their loan offerings may not be the best, either. For a newbie borrower, the sheer choice of lenders can become quite confusing. How does one make a choice over another? If you are faced with this question, this article is for you.

What are some of the important factors to consider when choosing a loan lending institution, from an app or a traditional lender? The following 4 are crutial

#1. Can the loan be availed online?

While the Government encourages all businesses to embrace the Digital India programme, several traditional finance and lending institutions have not fully adopted the Internet across all touchpoints. Traditional lenders certainly initiate the easy loan process online, but applicants must still go to the bank branch to submit documents, pay processing fee money, broken interest, etc. In contrast, the best loan apps in India offer a fully digital interface for customers – from application to disbursal to repayment, every part of the transaction can be done online using just the app. This makes the loan product a quick and economical one.

#2 The loan app is highly rated.

Millennials have lately started using loan apps to get easy loans. With paperless application and quick disbursals, The loan is convenient to get and also has easy repayment tenures. However, you must be circumspect about who you borrow from. Before installing the loan app, do thorough research t. Check user reviews on Google, and also look up reviews on Apple App Store and Google Play Store. Apps that have undergone multiple versions of beta testing are preferred, since they feature minimum to zero bugs or kinks. The best loan apps also have important security protocols in place to prevent hacking and phishing attacks.

#3 The lender does not levy foreclosure charges.

Several traditional lenders levy penalties on those who close their personal loans early. They may not levy a charge on foreclosing home loans (this is mandated by the RBI). But leading loan apps do not levy any such foreclosure charges – in fact, they encourage early closure of the loan. Foreclosure of the loan is good for your credit history and the lender also recovers their money faster from you, so it’s a win-win situation for both parties.

Conclusion

It is important to choose the right lending institution when you apply for a personal loan. The right lender has the best offering in terms of ease of use, convenience, cost and repayment terms.

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