A personal loan is a gateway to fulfilling all the desires that a person thought of in his entire lifetime. A personal loan can be taken for any reason, be it a wedding, building a house or financial aid when moving to a different place. A personal loan is a blessing to a person in need. It is the only entity that bestows a person’s wish irrespective of how small or big that dream is.
Unlike any other option, a personal loan helps the applicant out in any situation he is stuck in. An applicant can file an application mentioning the need of the hour and then later pay the loan back in small equated monthly installments called EMI.
The EMI can be calculated using the online Personal Loan EMI calculator available in your lender’s online portal. When an individual applies for a personal loan, he is required to submit some legal documents. The documents include passport size photographs, valid identity proof, valid residence proof and valid employment proof.
As a personal loan is an important attribute, you must be very careful while choosing the right one. Below are the five points that you must evaluate before nominating for an instant personal loan online.
5 Factors to check while Choosing the Right Personal Loan
- Credit Score
Maintaining a good credit score is very much important. A credit score or CIBIL score reflects the sensibility of the borrower. The score ranges between 300-900. The greater the score, the greater the chances of approval of the personal loan. A score of 750 or above is thought to be an excellent score by lenders. The person with a good credit score often gets to avail of lower interest rates.
- Pre/Post-Payments Facility and Charges
Always enquire your lender about the pre and post-payment facilities. These facilities at a nominal charge help you save a considerable amount that could have been drained as the interest over loans. Enquire about the charges so that you can save some amount when you become financially stable again. Some lenders might offer you a personal loan at a lower interest rate, but they might charge you a penalty if you plan to prepay the loan ahead of time. Always look for charges and penalties like late deposits and processing fees. Therefore, before filing an application to be secured in the future.
- Rate of Interest
Above all comes the fixation of the correct interest rate. The interest rate is not merely a percentage value but a value that can turn the tables against you. The interest rate is fixed, keeping in mind the income, credit score and other applicant attributes. A mere difference in interest rate can completely change the amount. Maintain your creditworthiness to avail lower interest rates, leading to lower monthly EMI, and thus, it would become more manageable.
- Loan Amount and Duration
Before applying for a personal loan, it is crucial to search for the specific loan amount you require. The applicant should never apply for a loan by assuming any value to be the borrowed amount. As the amount borrowed needs to be related within a fixed period with some additional charges, it becomes necessary to calculate the required amount. Alongside the amount, the duration must also be checked. Use the Personal loan EMI calculator to evaluate whether or not the monthly EMI be manageable for you.
Remember that your income must carry along the obligation of expenditure, savings and EMI. Therefore, always calculate the EMI on loan or make it a bit difficult to manage monthly expenses. Your EMI must never exceed 40% of your disposable income. Note that as the tenure increases and the EMI reduces, the increasing interest rate burden is still there. Keep in mind all these points and choose a fixed loan amount and duration consequently.
Where to find the right personal loan?
The right personal loan is that personal loan that gives you quick approval and has impressive interest rates. Instant Personal Loan Online is far better than any other personal loan lender. NBFCs provides you with an instant personal loan online without any hassle. It has some impressive attributes which separate it from any different lender.
If you want a personal loan to sanction quickly, then go for the best option. The applicant gets online approval, and after the documents are verified, the applicant will receive the amount within 30 minutes; also, depending on a person’s credit score and other details, the financial institutions might provide loans up to Rs. 25 lakhs. It has a personal loan EMI calculator that helps applicants to select the loan amount accordingly.