There are several reasons for which you want to apply for a personal loan. However, before applying for the loan, you must make an effort to find out the best product available in the market. There are two main concerns for people who want to apply for a personal loan in India. The first is choosing the right bank for applying personal loan in India and the second is to get low interest personal loan in India. Here are a few tips that you may find helpful. |
Tips to choose the right bank for your personal loan
•The first thing you need to do is to find out the offers provided by different banks. This could be a tedious process and requires quite an effort from your part. However, this is an important step as it will help you in choosing the right product. Like any other financial product, personal loan in India also requires proper research.
•Once you have got the details of different personal loan offers provided by different banks it is time to compare each of them carefully. Some of the features to check while comparing different personal loan offers are interest rates, terms and conditions, and prepayment fees.
•You will also need to check the disbursement fees of different banks. The lower the disbursement fees the better it is for you.
•If at a later time, you wish to pay your loan in a lump sum amount it is better to check and compare the prepayment fees of banks for the personal loan in India. Look for the bank which has lowest prepayment fees.
Tips to get low interest personal loan in India
•Once you have find out about different personal loan in India, you need to check the interest rates provided by different banks. There are two kinds of interest rates charged by banks and financial institutions providing personal loan in India. One is the flat rate and second is the reducing balance rate. Some of the banks provide flat interest rates which look cheaper at the first sight. However, when you take long term, the reducing balance rate is cheaper.
•The next thing you should do is to check your credit score. Your creditworthiness is a very important factor in deciding the interest rate on your personal loan in India. If your debt history is not so good, and you have defaulted a few times, then the bank will tend to charge more interest rate because personal loan is an unsecured loan.
•In case your credit history is not as good, chances of getting low interest personal loan in India is also very less. However, if you can get a co-signer with you with good credit score then you can avail low interest personal loan in India.
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