Irrespective of how effectively you manage your finances, sometimes, there may be financial requirements in case of urgency. In such cases, you can opt for a Personal Loan to fulfil your financial requirements. However, choosing the right Personal Loan lender according to your financial requirements and favourable terms can be complicated. Read on to learn how you choose the appropriate lender when looking for a Personal Loan.
What is a Personal Loan and When Would You Need it?
A Personal Loan is a type of unsecured loan that you avail from financial institutions to fulfil your financial needs. When you apply for a Personal Loan, you are not required to pledge any collateral or security, and it is available with minimal documentation. In addition, a Personal Loan gives you a lump sum credit amount, which you can use as per your need.
Applying for a Personal Loan enables you to fulfil any financial requirements with no end-use restrictions. You can use this amount to fulfil your emergencies, finance wedding expenses, meet medical urgency or consolidate existing debts. In addition, you can use it to fund your children’s higher education and fulfil travel goals.
Top 10 Elements to Choose the Right Personal Loan Lender
While choosing the best Personal Loan lender, you should consider the following 10 elements and make a wise decision.
1. Brand Value
One of the first and foremost elements that you should look for is the brand value of the Personal Loan lender. Choosing a loan lender with a good brand value and reputation ensures credibility and reliability. Moreover, a credible lender will indeed have a robust system providing a smooth and streamlined loan process.
2. Compare Loan Interest Rate
A loan interest is one of the critical aspects of a Personal Loan. It is advised to thoroughly research and compare the different interest rates offered by loan lenders. Choose a lender that offers attractive interest rates that can help you manage the cost of your loan EMI.
Also Read: The Ultimate Guide to Comparing Personal Loan Interest Rates
3. Examine EMI
The Equated Monthly Installment or EMI is the fixed sum that you are required to pay every month to pay off your loan. You can calculate your EMI options before opting for the right loan scheme. Make sure the EMI amount aligns with your financial budget.
4. Loan Tenure
The term loan tenure means the period during which you are required to pay off your Personal Loan. Longer tenures result in lower EMIs, whereas shorter tenures result in higher EMIs but lower interest costs. Select a loan term that achieves a good mix between affordable monthly payments and low-interest costs.
5. Compare Fees & Charges
Lenders may levy numerous fees and charges, such as processing fees, administrative costs, prepayment penalties, foreclosure penalties, or late payment penalties. Compare these fees across lenders to get the total cost of the loan. Lower fees from a lender can help you save money in the long term. Some lenders like Poonawalla Fincorp provide a transparent loan process with minimal processing fees.
6. Credit Score Limit
To qualify for a Personal Loan, each lender has a minimum credit score requirement, which ranges between 300-900. The closer your score is to 900, the better chances you have of getting a Personal Loan at low-interest rates. Your credit score represents your creditworthiness and influences the interest rate charged to you. To boost your chances of loan approval and favourable conditions, check your credit score and make sure it fits the lender's criteria.
7. Prepayment and Foreclosure Charge
Prepayment means repaying the loan amount before the specified duration, whereas foreclosure means completely closing the loan. Some lenders levy fees for early repayment or foreclosure. If you anticipate early repayment, seek lenders like Poonawalla Fincorp, who impose little or no prepayment or foreclosure fees.
8. Processing Time
Personal Loan applications are processed at different rates by different lenders. If you require funds quickly, look for lenders with short processing periods to ensure you obtain the loan amount as soon as possible.
9. Minimum & Maximum Loan Amount
Compare different lenders and analyze the minimum and maximum loan amounts. For instance, Poonawalla Fincorp provides you with Personal Loans of up to Rs. 30 Lakh. Review your financial requirements and your budget, and then choose the loan amount.
10. The Flexibility of Repayment
One of the crucial factors that you should look out for in a Personal Loan lender is the amount of flexibility of repayment a lender exhibits. It may differ from one lender to another, and it is important to browse first and choose a lender that suits your financial condition.
Choosing a Personal Loan that Offers Flexibility and Transparency
In today’s credit-driven world, every individual looks for convenient and efficient loan schemes. Understanding this dynamic, some of the best Personal Loan companies offer a Personal Loan of up to Rs. 30 Lakh and attractive interest rates. Such loans perfectly cater to an individual’s needs.
Also Read: Safeguard Yourself from Personal Loan Scams
How to Apply for a Personal Loan Online?
You can easily apply for a Personal Loan online through Poonawalla Fincorp by following these simple steps:
Step 1: Click the ‘Apply Now’ button to open the loan application form.
Step 2: Input your details and all the required documents.
Step 3: Click the ‘Submit’ button to complete your application process for Personal Loan.
Check Free CIBIL
Here is how you can easily check your CIBIL score for free at Poonawalla Fincorp:
Step 1: Click the ‘Get Your CIBIL’ and fill out the form by selecting your employment type and gender.
Step 2: Enter the necessary information, including your name, contact details and other relevant details.
Step 3: Review the terms and conditions and select the ‘Agree’ option to submit the form.
Step 4: You will receive your CIBIL score and can download it for further insights.
To Conclude
Availing a Personal Loan will enable you to fulfil your financial crunch in case of emergencies. However, you must consider the above points to choose the right Personal Loan lender to make the most out of your loan application. Choose trusted NBFCs like Poonawalla Fincorp with minimal eligibility criteria and exquisite features and benefits on a Personal Loan.
Frequently Asked Questions About Personal Loan Lender
- How do you decide if a Personal Loan is right for you?
There are several factors that help you decide whether a Personal Loan is right for you. These factors include loan amount, interest rate, tenure, maximum and minimum credit amount, foreclosure charges and monthly instalments amount.
- Which lender is easiest to get a Personal Loan from?
Poonawalla Fincorp is amongst the best Personal Loan companies to get a Personal Loan. With a minimum interest rate of 9.99% p.a., a flexible loan tenure, minimal documentation and eligibility criteria, Poonawalla Fincorp can help fulfil your financial needs without any hassle.
- Is a Personal Loan better than a credit card?
Yes, a Personal Loan is better than a credit card as it has lower interest rates and gives you a lump sum amount at once. You can apply for a Personal Loan if you plan to borrow funds to fulfil large or midsize financial requirements.