5 Ways to choose the best Personal Loan

 

For any kind of sudden expenses or big-ticket, planned purchases, a Personal Loan is the best way to deal with such circumstances. There are multiple reasons where availing a Personal Loan might be a good option to choose like Traveling abroad, Wedding, Higher Studies, Home Renovation etc. A personal loan is free from end-use restrictions & hence it can be used for any purpose that you deem fit.

Getting a Personal Loan is also an easy process in today’s world, thanks to the instant Personal Loan app. These apps have made the process of availing a Personal Loan utmost simple and convenient. With proper documentation and fulfillment of the necessary eligibility criteria, you can get money credited in your account instantly. This phenomenon comes in handy especially when you find yourself in emergency situations or fall short of funds.

Below are the factors that you must consider in order to choose the best Personal Loan –

·         Loan amount

·         Rate of Interest

·         Collateral free loan

·         Easy documentation

·         Tenure of repayment

1) Loan amount –

In accordance to the purpose of taking a Personal Loan, your requirement of funds can be big or small. Hence, you must find a lender that is willing to lend you the required amount of loan. If your requirement is small, there are many instant loan apps like Kissht, MoneyTap etc that lend small cash loans.

2) Rate of Interest –

The Rate of Interest is an important factor that you must look at before finalizing any lender for your need of funds. It is something which you pay extra, apart from the principal amount and hence adds to the total cost of your loan. It is always wise to compare 2 to 3 lenders before finalizing one.

3) Collateral free loan –

Personal loan is an unsecured type of funding and hence, you do not need any collateral against the loan which you need to avail. This makes Personal Loan an even more comfortable option to look at. You do not have to worry about any mortgages or collaterals to provide against your loan amount.

4) Easy documentation –

The documentation process for availing funds from instant loan apps is very simple. You only need to produce some basic documents like your ID proof, address proof, latest salary slips etc. and you’re good to go. You do not need any complex paperwork to be done.

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5) Tenure of repayment –

The Personal Loan you take comes with a fixed repayment tenure i.e. a time period within which you have to repay the entire principal amount with interest. The longer the tenure, the smaller are your EMIs and the more EMIs you pay regularly, it has a positive impact on your CIBIL score.