Finding and taking a personal loan is a process that demands the time and patience of the borrower. Although many independent agencies keep calling potential customers for personal loans, shortlisting the best personal loan becomes challenging.
As a borrower, you are more likely to make mistakes when in dire need of money. Finding the best personal loan requires a lot of research as the different lenders have different terms and conditions, which creates all the differences.
Here are some tips to help you find the best personal loan in India online.
How to Find the Right Personal Loan
● Check Your Credit Score Before Applying
Even though individuals know they have a good credit history without any default on debt payments, they should check their credit report before applying for a loan. Even a missed credit card payment can affect your credit score. It can be an unintentional delay, but it will affect your credit score, leading to a loan rejection. Moreover, there can be errors in your credit report. Checking your credit score beforehand helps you increase the score before applying for a loan, increasing the chances of getting a loan at a reduced interest rate. Also, the credit score requirements of different lenders are different. Therefore, it is good practice to check your credit score beforehand and avoid any loan rejection.
● Gather Information about Loans and Lenders
Some online research can help you compare various lenders’ loan offerings with different features. It may seem time-consuming, but it is necessary to make the right choice. It allows applicants to get instant approval and finance. Reputed financial institutions like Clix Capital can provide you with the required funds within 15 minutes after loan approval as they follow entirely digitised loan processing.
● Look for Pre-approved Loans
Pre-approved loans are readily available for individuals after scanning their financial details. These loans are based on the information provided by credit bureaus to lending institutions. They can give pre-approved loan offers to borrowers based on their credit scores and eligibility. Since the lender has already verified the details, the loan amount can be transferred quickly after application submission. Generally, these loans are available for individuals who have successfully maintained an excellent credit score.
● Explore Seasonal Offers
Financial institutions keep notifying potential borrowers about their special offers on various financing options. One can keep an eye on such offers, as these are more affordable financing options available for a limited period. Such offers are often available on online personal loans, especially during the festive season.
● Make use of Sound Relationship with the Existing Lender
If an individual has proven their creditworthiness and discipline to repay their debts, it helps them maintain a good relationship with a lending institution. Such loyal customers with a good history improve their chances of getting the best personal loan in India at attractive interest rates.
● Look for Repayment Flexibility
Borrowers have different repayment capabilities, so they look for online personal loans with flexible repayment tenure. One can opt for a lending institution offering flexibility in personal loans. If you have a stable earning source and you can manage to repay considerable EMI amounts, you can apply for a short-term loan. Otherwise, you can look for a longer-term loan with a renowned lender, offering loan repayment flexibility. You can repay your loan in easy instalments from 12 months to 48 months during your chosen repayment tenure.
● Choose One with Easy Eligibility Criteria
Look for lenders offering online personal loans against eased eligibility parameters.
– Many lending institutions demand a minimum credit score of 725
– Salaried individuals aged 25-58 years with a minimum monthly salary of Rs.25,000
– Total work experience of one year with six months of experience in the current organisation.
● Utilise Personal Loan EMI Calculator
Your repayment capability is one of the key factors when applying for a personal loan. One should apply for a loan amount per income status and monthly budget. You can use a personal loan EMI calculator to find the best loan scheme. The tool will help you choose a suitable loan tenure according to your repayment capacity. Enter the loan amount and select the preferred loan tenure to estimate loan EMIs. If unsatisfied with the estimated EMI amount, you can increase or decrease the loan duration multiple times to get a suitable EMI amount.
● Borrow from Recognised Lenders
Often, during an emergency, individuals in a hurry make decisions and get into a trap of unorganised lenders who charge a very high-interest rate. You can avoid such lenders by borrowing only from renowned institutions with RBI shields offering personal loans. Choosing recognised lenders saves you from unnecessary implemented charges.
● Negotiate with the lending institution
A lending institution can offer you a low-interest rate loan, a high loan amount, and longer-term tenure if you have successfully impressed the lender with your repayment history to repay the loan. Your financial standing can help you get a lower interest rate since the lender can trust your repayment capability. Also, a loan applicant employed with a reputed company earning a significant amount per month and having a high credit score can negotiate with the lending institutions to get the best personal loan at more favourable loan terms.
Thus, consider all the options first, and based on these factors, choose the best personal loans. This will help you get instant personal loan approval and quick disbursal. You can even negotiate for the best offers available on personal loans.