Things to check before opting for an instant personal loan online

The increasing costs of living in recent years have caused a serious dent in our financial planning. Further, if there comes a medical or financial emergency our way, we are left with no other choice but to borrow capital from friends and family. However, thanks to the instant personal loan online provided by the new-age banks and NBFCs (Non-Banking Financial Companies), we can now not only get financial assistance but that too without losing face.

Further, these financial institutions provide financial assistance at way lower instant personal loan interest rates compared to traditional financiers. Other than that, there are a plethora of other benefits of opting for a personal loan online; 24/7 banking assistance, paperless documentation, access to online tools, etc.

Also, we can easily borrow capital and repay it over a set period thanks to the flexible repayment tenure provided by the new-age banks and NBFCs (Non-Banking Financial Companies). However, before you choose the financial institution to borrow instant personal loan online, ensure that you check the below factors:

1. Interest rates

In recent years, there are several new-age banks and NBFCs (Non-banking Financial Companies) that provide instant personal loan online. However, not every financial institution will provide you with the lowest interest rates; thus, it becomes extremely important to compare instant personal loan interest rates before finalizing your financial institution. Further, the banks and NBFCs (Non-Banking Financial Companies) also provide you with online tools such as an EMI calculator; thus, you can easily use this tool to calculate your instalments based on your interest rates, principal amount, and repayment tenure.

2. Processing fees and other charges

The new-age banks and NBFCs (Non-banking Financial Companies) not only charge you interest rates but also other fees. The various other charges levied by the financial institutions’ on their customers are processing fees, prepayment charges, late-payment charges, etc. However, these charges are not the same for every bank and NBFC (Non-Banking Financial Company). Thus, you must ensure to compare these processing fees to find the best instant personal loan online.

3. Financial institution’s reputation

Although, a majority of borrowers overlook this factor; however, a financial institution’s reputation is extremely important. After all, checking for their reputation will greatly help you find the bank or NBFC (Non-banking Financial Company) with the best customer service but also the best instant personal loan online in the market. You can easily check a financial institution’s reputation by searching for online comments, reviews, etc.

4. Instant personal loan eligibility criteria

Even if you finalize a particular financial institution, you won’t be able to apply for an instant personal loan online if you don’t fulfil their eligibility criteria. Personal loan eligibility criteria are set by new-age financial institutions to reduce the risks associated with lending capital. These eligibility criteria are different for every bank and NBFC (Non-banking Financial Company). Thus, you must always ensure to check a particular financial institution’s instant personal loan eligibility criteria to be able to make an informed decision.

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