How To Select The Best Personal Loan In India?

Finances when well managed can make room for all your desires. What we miss out on, is the right planning. We must give time to our finances with a long term view. Financial planning having a brief idea about the various schemes offered by the financial institute, is helpful. Be it home loans or education loans, loans against property or pre-approved loans, one can avail them all with the right financial planning for personal and business purpose.

Personal loans in India offered by the financial institutes, are designed in a manner so as to cater to a number of individuals and their unique purposes for the same. Individuals avail the loan for purposes such as marriage, holiday, purchase of laptops, and similar other reasons.
These loans are unsecured loans and thus the borrower is charged a higher rate of interest as compared to secured loan interest rate. The financial institutes offer you tools to help you decide on the EMI you wish to pay such as the personal loan EMI calculator. They help you plan your finances well.

Selecting The Best Personal Loan In India

When we say best we mean the most appropriate for yourself. The varied schemes exist as they wish to cater to your needs. Things you must ensure to avail the loan at any given point of time are:

1. Credit Score- Credit score is the most important factor in order to avail a loan. The credit history reflects your consistency of making timely payment in keeping with your dues. The financial institutes take decisions based on the same in order to approve you the loan. They need to be sure that the customer would pay back on time being a conscious investor.

2. Documentation – The documents required in order to avail a personal loan are simple. You are required to submit proof of identity, proof of address, income statement or salary slips of the past 6 months and any other particular document if so required by the institute.

3. Interest Rate- The interest charged on personal loan is higher as compared to other loans. You may be required to pay interest rates as high as 20 %, but, as the loan amount is comparatively small, the interest burden sums up to a reasonable figure.

4. EMI Calculator – The financial institutions offer you tools such as the personal loan EMI calculator to help you decide on the EMI amount you wish to pay every month, in keeping with the repayment tenure you desire as per the scheme norms.

Women can avail special interest rates offered through the special schemes by the financial institutions. The balance amount on the personal loans availed can be transferred to another financial institution if so desired, in order to avail better rate of interest. One must negotiate the interest rate, other fees and charges at the time of availing the loan. Personal loans are convenient to avail and can be very helpful at the time of need.