7 Simple Ways to Choose the Best Personal Loan Options in India

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7 Simple Ways to Choose the Best Personal Loan Options in India

Financial needs may come knocking at your door when you least expect them to. Traditionally, the only sources people could borrow money from were unre

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Financial needs may come knocking at your door when you least expect them to. Traditionally, the only sources people could borrow money from were unregistered moneylenders. They would charge exorbitant interest rates. Repaying the funds would naturally get stressful for people. Thankfully today, we have easy access to personal loans from registered and reputed financial institutions to satisfy our necessities. Requisites ranging from debt consolidation to dream wedding plans, a personal loan can help pay it all.

Apps offering personal loans in India have been a savior for executing the entire process and conducting repayments within the specified time. Personal loan apps offer effortless loans with easy documentation and flexible repayment tenure. It is designed as a swift solution to generate instant funds. 

Loan apps have taken a step ahead by letting customers obtain a personal loan just as fast as ordering food online. The introduction of instant loan apps such as Fullerton India InstaLoan, PaySense, and others allows one to register by downloading the app from their website, filling in a quick application, uploading essential documents, and receiving the loan amount shortly after. Since the wide range of options available can overwhelm you, we help you choose the best personal loan deal with the following tips:

Ways to Choose the Best Personal Loan Options in India:

  1. Instant Speed: Opt for loans that are available instantly or within a 24-48 hours distribution period. Such loans make sure that the loan amount is easily accessible to people in urgent need of finances. 
  2. Interest rates: The next most important thing to consider is the interest rates on a personal loan. It’s wise to look around various sources and choose from the most suitable by making comparisons. It’s ideal to select loans that have a lower rate of interest. Different financial sources have different interest rates; one can go through them and check suitability according to their budget. The most crucial factors of comparing other lenders include- analyzing their reputation, checking trustworthy sites, and examining genuine reviews. You must also ensure income stability from your end to guarantee smooth and hassle-free repayment of loans. 
  3. Zero Collateral: A personal loan is easily accessible and pledges no assets like gold jewelry, house, automobile, etc., as security. It is an unsecured loan. As long as you possess a decent credit score and acceptable financial requirements, you are good to go. Ensure that your lender offers a zero collateral personal loan. 
  4. Minimum Documentation: Personal loans through loan apps ensure easy and hassle-free documentation. Be wise enough to choose from them. Thus, making sure you have instant availability of loans at the time of need. Usually, the loan amount gets transferred to the borrower within 24 hours of approval. However, the approval process may include checking your KYC details such as personal details, credit record, bank record, salary details, etc. 
  5. Loan Tenure: Choosing a loan plan according to tenure is as essential as selecting interest rates. An extended period means lower EMI with an increase in total payouts and vice-versa. Make sure you choose a lender that is flexible and adapts to your needs. 
  6. Processing Cost: Another important factor in consideration is the low processing cost of the overall loan process. Few loan apps in India charge around 0 – 6% of the processing fee on the entire loan amount inclusive of GST. The lender deducts the following amount from the loan amount. Therefore, validate the hidden charges levied by the lender. 
  7. Customize EMI: Various apps possess an in-built EMI calculator for the borrowers to calculate and customize EMIs according to their budget. You only need to fill in your loan amount with a suitable percentage of interest and tenure to determine the EMI amount befitting your budget. So choose an app that offers such tools.

Must Read: Long Term Loans: What Credit Score Do I Need?

Bonus Tip: To ensure smooth sailing of your entire loan process, keep a satisfactory credit score for yourself. Lenders often check credit scores as a priority to glimpse the financial position and credibility of the borrower. There are chances you might miss getting your loan in case of a low credit score.

With easy access and an online application process executed within minutes, there’s no reason for you not to take one out when you need it most!