Personal loans have been one of the most sought-after financing options for individuals today, especially in the post-pandemic economy due to increasing income constraints. Typically, these advances come with zero restrictions to end-use, which makes them suitable for funding personal as well as professional expenditures. Simultaneously, there has also been a growth in the number of personal loan providers, albeit low in proportions.
This has, however, benefitted aspiring personal loan borrowers as lenders provide these advances at competitive interest rates along with several other attractive features. Choosing a lending institution with so many options to look for can be a challenge though. We have thus listed a few essential aspects to look for, which should help select the right personal loan provider for you.
Top Features to Look for When Finding the Right Lender for Personal Loan
1. High financing value
The need for a personal loan can span across a wide range of expenses, both personal and professional. Such expenditure requirements also often involve high funding quantum, which makes it challenging to meet with personal savings.
Personal loans provided by some of the best lending institutions ease this funding need by providing credits up to Rs.25 Lakh to eligible individuals. You can thus easily meet financing needs of high value, such as marriage expenses, cost of higher education, emergency medical cost, and the likes with financing from a suitable personal loan provider.
You can even meet expenditures related to business expansion, new facility installation, and the likes with a suitable personal loan in place.
Flexible repayment tenure
Availability of the repayment tenure can be crucial to the overall affordability of your personal loan. Long tenures often bring down the EMIs payable, bringing loan repayment within one’s financial capacity easily. It, however, leads to higher interest accumulation due to a longer duration involved. Contrarily, a short loan tenure means higher EMIs but reduced interest payables.
It is thus crucial to select a lender who offers sufficient flexibility in loan tenure selection, so you adjust your choice of loan repayment as per your financial standing. To find the best lender for your personal loan, you can seek tenure flexibility of up to 5 years for ideal repayment selection.
When applying for the loan with your selected lender, you can make use of a personal loan eligibility calculator to determine the maximum loan availability as per your income. Accordingly, assess EMIs payable with an EMI calculator and proceed to apply.
Repayment in easy EMIs
The best lending institutions in the market also make sure that a prospective borrower finds it easy to manage his/her repayment. “Personal Loan Provider” Keeping this in mind, they make sure the EMIs are set at an affordable amount as per the borrower’s monthly income and existing liabilities.
Of course, this impacts his/her overall loan availability, but given the repayment capacity one holds, it only benefits in the long run as the loans become conveniently manageable through repayment in easy EMIs.
Other repayment options
You can also look for other repayment options to find the best lending institution in the market for borrowing a personal loan. It allows the flexibility to choose a repayment plan as per one’s suitability of income and financial standing. Some lenders bring prepayment facilities like part-prepayment and foreclosure at zero additional charges, further making repayment affordable.
Affordable rates of interest
Interest rate is one of the top concerns of borrowers when it comes to availing of a personal loan as it determines the cost of the loan as well as its overall affordability for you. A lower interest rate ensures an overall reduction in your repayment liability, thus keeping the EMIs in check as well. You must make sure to undergo detailed market research along with lender comparison to ensure that you find a personal loan provider that levies the lowest rates along with other fees and charges on the advance.
Other factors to look out for to ensure your lender offers the best facilities for your personal loan include the following.
- Easy online application
- Quick approval and disbursal
- Minimal paperwork requirement
Once you have completed these checks and arrived at a suitable personal loan provider, check their eligibility requirements and if you meet them. Accordingly, arrange for all necessary documents and apply for your personal loan. It can be wise to send your application online as it eliminates many redundant steps and eases the entire process.