Quick financing has changed the world of personal finances. Today, with easy access to personal loans, emergency funding is always at your disposal. These loans are easy to avail and quick to process. They have simplified eligibility criteria and digital document processing. A personal loan can be availed by anyone, irrespective of their occupational background. You must have a steady source of income for assurance of repayment. There is no need for collateral or guarantee to avail a personal loan. If your need is below Rs. 1.5 lakhs then you can get your loan processed within minutes through online loan apps.
Today, several financial institutions provide personal loans to eligible borrowers. While some may offer attractive interest rates, some may offer great benefits. As such, you need to do thorough research to avail the best possible loan option. Here are a few things that you must check before choosing your lender.
6 ways to find the best personal loan for your financial needs
- Flexible range of financing
One of the best features of a personal loan is its flexibility of use. That means you can use your personal loan amount for any need. From financing a medical emergency to buying a new laptop, you should be able to use the loan amount in any way you desire. This also means that your lender shall provide you the option to choose a loan amount of your choice. One of the best options is to browse through the online loan apps that provide you with quick financing anywhere between Rs. 50,000 to Rs. 1.5 lakh.
- Eligibility criteria
Every lender has a special set of requirements that you must fulfil to be eligible for a loan. The eligibility criteria will also determine the amount of loan that you can apply for. So, before filling out the loan application, you must check the eligibility criteria of different lenders. The simpler the eligibility criteria, the easier will be your loan processing process. You can check out the online loan apps to get the simplest eligibility criteria. You will just have to submit your identity and income proof. This makes your loan application process easy and hassle-free.
- Collateral-free funding
Personal loans are unsecured loans. This means you do not have to put up collateral as a guarantee of repayment. Most financial institutions offer you collateral-free personal loans. So, you must make sure that the lender of your choice is also offering you the same benefit. Check out your options on online loan apps. You just need to meet their eligibility criteria and be able to furnish the necessary documents. Your zero collateral loan amount will be approved and disbursed within minutes.
- Affordable and competitive rates plus charges
The interest on your loan is the cost that you pay to the lender for borrowing money. Different loan providers offer different interest rates. It is important for you to go through different loan offers and choose a lender that offers the lowest interest rate. This will significantly reduce the amount that you will need to pay the lender. You must also check the processing fees, application fees, and other charges. In addition to this, it is very important to check out the penalty charges in case of default or late payment. You may get a lower interest rate if you have a good credit score, an existing relationship with the lender or you work in a reputed company. Many lenders also offer promotional deals on personal loans during festive seasons. So, make sure to download a personal loan app to get alerts on special offers.
- Tenure flexibility
The tenure of your loan will affect your EMI as well as the total interest payable on the loan amount. If your lender offers you a loan tenure that is very short, then it will result in hefty EMIs. Whereas, if you choose to go for the longest possible tenure then you will be paying much more interest. Thus, it is very important to think it through and fix a tenure that’s best suitable for you. You can download an online loan app and use their EMI calculator to make an informed choice.
- Fast approval and disbursal
The need for a personal loan is often of urgent nature. For example, if you are applying for a personal loan for medical purposes or for emergency purchases, then you would need a lender who would credit the loan amount instantly. So, make sure to check out that your lender provides an instant approval feature. You just have to submit a digital copy of the documents and your loan will be processed within minutes. You can check out the quick cash loan apps for the fastest approval and disbursal of funds.
Online loan apps have made financing more convenient than ever. However, before considering a personal loan you must make sure that you have a repayment plan in place. Check out your current income-debt ratio, the recession in the market, and other variables that can affect your income. Because missing out on your loan EMIs will not only affect your credit score but you will also have to pay late-payment penalty charges. If you are applying for a loan that’s below Rs. 1.5 lakh then go for online loan apps to get the best deals.