Unlike any other lending options, personal loans are considered one of the most ideal options to deal with any financial emergencies ad cash crunch. With the availability of innumerable banks and NBFCs (Non-Banking Financial Companies), getting a personal loan has become easier. But making a decision in a hurry and not choosing the right lender would let you to experience future disappointment. Check out the post to explore the factors you need to know before choosing the most suitable lender for a personal loan.
Background the Lender
With the rise of lending opportunities in India, there are a countless number of lenders available online. The scenario is so booming that big companies or inventors are investing from abroad and earning from the hefty rate of interest.
Before you choose one, you must know that the agent you choose has a successful and legitimate track record. Ensure that the lender has no track record of fraudulent activities or has done something with ill motive.
Accredited to Regulatory Authority
It is important that the lender you are choosing should be accredited by a regulatory authority like SEBI (Securities and Exchange Board of India). Never deal with anyone who is not accredited or adheres to the guidelines of the higher authority.
If not, you may face legal consequences or other problems later. Accreditation to the highest authority ensures that the lender is legitimate and the process will be smooth even after the disbursal.
Rate of Interest
Before you choose a lender or personal loan agent from a reputed lending institution, it is important to compare the rate of interest they offer with others. Depending on the tenure of the loan amount, even a minor difference in the rate of interest from others can create a great difference. Here you can use your credit score to get the best interest rate for the loan amount.
If you have a higher rate of interest, you can bargain with lending institutions. Never settle with the first option to come across. Always choose over a wide range of options available, compare and then make the final decision.
It’s not just the interest rate that you need to pay along with the loan amount. There are many other charges or fees that the borrower needs to pay to the bank or respective lending institutions. One must pay processing fees ranging between 1% to 3% of the loan amount.
There are pre-payment charges, EIM default charges, liability charges, and much more. But in some cases, lenders ask for charges that are not legitimate but tend to form a bigger amount of money. Check with the lender buxic whether they are charging you any such fees.
This is one of the most important factors to consider when you plan to avail of a personal loan. Of course, the process of having a loan is a one-time experience, but one needs to have the assistance of the lender in different situations.
So, it is imperative to choose a lender with round-the-clock customer support or service to the clients for any query related to the loan account. Ensure that the lender has good reviews when it comes to providing the best customer service experience to the clients.
So, now that you know the factors you need to consider before having a personal loan make sure to follow them to have the best lending experience. You can also share your experiences or queries regarding the discussion with us below in the comment section.