Getting a personal has never been easier. Whether it’s your child’s marriage or that dream vacation you’ve always wanted. Your just a personal loan away from your desires.
In addition to that the loan process has also become so much more easier and customer-friendly. So instead of waiting and saving over years, experience now and pay for it later!
Although personal loan schemes today are great, one needs to choose their loan very carefully, to avoid paying more later on.
Unsecured loans, such as personal loans are also very expensive. While availing a loan has become affordable and simple, it does have its drawback.
Below listed are some tips that you can use to look out for before you decide to sign up for a personal loan
- Do a solid research project to understand the various options in the market and compare the interest rates they offer, the pre-payment charges they levy, and the terms and conditions.
- Even while your loan amount may be conservative, your interest rates will certainly not. After all this is the direct revenue that banks make when giving you a personal loan. In all your searches, you must try and find the cheapest option. You should be aware that certain terms that banks use can be misleading and terms like flat personal loan interest rates that appear to be cheaper are in fact very expensive. Taking an example of a 7% flat rate, you would really be estimated to pay about 13%. Try to choose a monthly reducing balance option as opposed to a half-yearly reducing option or flat-rate. There is no such thing as an interest-free loan. Even if you find an offer look to back it up with credible information from credible sources.
- Processing charges will typically be levied on your personal loan. This is a bargaining point for you. Most banks would waive off your processing fee in the interest of disbursing the loan to you. Don’t forget to factor in these costs into your loan.
- One important tip is when selecting your EMI. Do this very carefully. It will be a battle between paying off your loan in a shorter span of time or paying more over a longer period of time. The lower the tenure the lower the total interest you are paying in the long run.
- Any deals you get offered should be backed by paper or documentation. Always ask for a letter in the banks letter-head clearly mentioning the exact rate of interests, processing fees, pre-payment charges along with the interest-schedule. Before you sign any documents, make sure you recheck all the terms of the loan deal.
- Do not present the bank with any false information. You might end up being blacklisted or never being eligible for a loan at the very least. Even if you get away with it, eventually the establishment will come down on you harder and stronger.
- Signing blank documents is absolutely unadvisable. Even if it takes you a few hours to fill-up the form, please do so and read the fine print carefully. Do not leave anything for the executive to fill-up.