5 Things to do before opting for an instant personal loan online

In the past few years, it has become extremely difficult for the middle-class Indian population to manage their financial funds wisely. After all, the ever-increasing inflation rates along with the sluggish economic developments have caused a huge dent in the financial planning of citizens. Further, at such times, if there is a medical or financial emergency, people are left with no other choice but to lose face and borrow capital from friends and family.

However, thanks to the availability of financial assistance from the new-age banks and NBFCs (Non-banking Financial Companies), people can now easily borrow an instant personal loan online at way lower interest rates compared to the traditional financiers.

However, before you choose to apply for an instant personal loan online, ensure to do the below 5 things:

1. Compare interest rates online

In exchange for the financial assistance provided by the financial institutions, the new-age banks and NBFCs (Non-banking Financial Companies) charge you with interest rates. However, instant personal loan interest rates are not the same for every financial institution; thus, you must compare online to be able to make an informed decision. You can easily compare instant personal loan interest rates online by either visiting a financial institution’s website or via affiliate websites.

2. Calculate your instalments

Although, the banks and NBFCs (Non-Banking Financial Companies) provide you with flexible repayment tenure; however, it doesn’t mean that you should opt for a longer repayment tenure. After all, the longer your instant personal loan repayment tenure, the higher your instant loan interest rates. However, the new-age financial institutions have started providing online EMI calculators; thus, you can use this tool and calculate your EMIs (Equated Monthly Instalments) based on your repayment tenure, interest rates, and principal amount. Therefore, by doing this you can calculate your instalments and plan your repayments wisely.

3. Processing fees and other charges

Interest rates are not the only charges that you have to pay in exchange for an instant personal loan online; after all, the new-age banks and NBFCs (Non-Banking Financial Companies) also charge you additional fees. These additional fees and charges are in the form of processing fees, prepayment charges, and late payment fees. Thus, you must ensure to check and compare these charges before finalizing your financial institution.

4. Principal amount

An instant personal loan online is an unsecured form of financial assistance. Thus, not every bank and NBFC (Non-Banking Financial Company) will provide you access to the same principal amount. Hence, at such times, before finalizing your financial institution, ensure that you thoroughly compare the principal amount to be able to choose the best instant personal loan product.

5. Eligibility criteria

To be able to borrow capital from the new-age banks and NBFCs (Non-Banking Financial Companies) you have to meet the minimum eligibility criteria set by the financial institutions. However, not every financial institution has the same eligibility criteria; thus, the best instant personal loan product for you is the one that is accessible to you.

I specialize in writing finance blog; Particularly, topics related to personal finance, loan, insurance policy and financial management.