Lenders consider many factors to check your repayment ability. For instance, your CIBIL score is important when you apply for loans. The higher your score, the greater the chances to get a loan at competitive interest rates.
At the same time, when you apply for instant personal loans, you need to be comfortable with the rates and services the lenders offer. This is why you need to consider seeking all the necessary information before making the application. This includes comparing loans, EMI structures and other important aspects.
Let’s take a look at the various factors you might want to look for in a lender.
Tip #1 Look for Competitive Interest Rates
Your affordability is the first aspect to consider. The lower the interest rates, the faster you can repay your loans. A higher CIBIL score gives you more leverage in negotiating rates. Lenders will also take a look at the stability of your income stream. Visit the brand websites to check the actual rates.The slightest difference in rates can save you a lot of money.
Tip #2 Consider Flexibility in Repayment
It would be useful to have a flexible loan tenure. Your loan eligibility will depend on your disposable income. A shorter tenure means your EMIs could be higher, but it can limit the interest costs. A longer tenure could increase your eligibility but you end up paying more in interest charges. You can use a personal loan EMI calculator to figure out if you have the repayment capacity.You also need to be able to pay back the loan comfortably.
Tip#3 Minimal Documentation
Choose a lender that supports a fuss-free online loan application process, with minimal requirements for documentation.This will ensure a faster loan application process and quick approvals. When you have emergency fund requirements, the last thing you might want to do is fill endless forms and submit a lot of documents. In fact, look for lenders who can ensure faster credit in your accounts through eSign/eStamp.
Tip#4 Check the Fees and Charges
Certain fees and charges are associated with personal loans. For instance, processing fees, EMI bounce charges, overdue interest and more. Make sure to make a comparison between different lenders to find an affordable loan structure. These charges will impact the total loan cost.
Tip#5 Digital Banking Services
To have a simple, faster and streamlined loan application process, consider lenders who offer you modern banking services. This includes:
- Digital KYC Process: Submission of all required documents online.
- Net banking facility: Digitally set up your mandate using net banking. Make easy transfers using RTGS/NEFT/IMPS
- Digital Disbursal:Quick credit of loan amount througheSign/eStamp
- Advanced Banking App:To make applications and transactions on the go. You can get access to your loan details from anywhere through a banking app.
Make sure to understand the terms and conditions associated when you apply for a personal loan. It’s best to clear doubts immediately. Lastly, do give importance to the quality of customer services of the lender, to make your life easier ahead.