To know the same, check the other offers and compare them with yours. This way, you can judge whether you’ve made the right choice and grabbed the best personal loan. But, how to compare loan offers? Well, it is easy to do, visit the banks or NBFCs’ websites and see their offers on personal loans. Now, compare it with your existing loan and see whether they could have offered you affordable EMIs or lower personal loan interest rate. Take a look at the article further and know the traits of the best personal loan.
How to Check Whether You’ve Grabbed the Best Personal Loan?
To do the same, take a look at the below tips –
Is Your EMI affordable to You?
If you don’t feel the strain of EMIs on your monthly expenses, that means a good financial decision. On the other hand, if the EMIs are making it difficult for you to do everyday expenses, you might have made a wrong decision. You could thus think of switching to the best personal loan.
What is Your Total Interest payout?
Have you checked the interest payout? If not, use the EMI calculator and see the same. Because you might not know that the interest payout will be more than what you may have expected. This is why it is advised to use the EMI calculator to be prepared for the same. If the interest payout is around 50% of your principal amount, you have got a problem. Because an interest payout of 10-30% is considered manageable.
An interest payout of 50% can make it difficult for you to keep up with the payout. What to do in situations where the payout is high? In such a case, consider part prepayment of the loan that reduces the interest burden considerably. Or you can transfer your loan to a lender which is offering a low-interest payout. By doing so, you can get the best personal loan at last.
Are There Any Hidden Charges on Your Loan?
Make sure you check the loan document carefully at the time of getting a loan. Because if you don’t, you might end up paying unnecessary charges to the lender. The following are the only reasonable charges that you need to pay for a personal loan –
- Processing fee – It will be reduced from your disbursed loan amount
- Penalty charge – Pay this fee if you have missed an EMI payment
- Prepayment charge – When you decide to foreclose the loan, the lender will charge you this.
Loan Disbursement Period
The lender which disburses the loan amount quicker to your account will be the best for you. Because in case you need instant money and the disbursement takes 2-3 days, it can be difficult for you.
So, check the lender’s terms and conditions before you borrow a loan from the same. Otherwise, you won’t be able to meet your financial needs on time. Choose a lender which is offering you a loan amount instantly.
Some banks offer pre-approved loans too. And if you’re an existing bank customer and have a good repayment history, check whether you’re eligible for it or not. Because such loans will be disbursed in seconds.
How Lengthy is the Loan Process?
Both online and offline personal loan application processes are available. But does it take more of your time? If yes, it isn’t the best personal loan. Because the best loan should not keep you waiting for long. A good loan application process should wrap up quickly and not make you wait for days.
Some lenders have introduced mobile apps, so you don’t need to make branch visits. Just complete a video KYC and get the lump sum amount in your account.
Now that you know every trait of the best personal loan, keep that in mind while applying for the same to meet your financial needs.
