When availing of personal loans, getting the best deal is essential. But obtaining a personal loan can be complicated, so it’s important to know the basics of getting the best deal for one.
10 Basic Rules To Get The Best Deal
Here are some basic rules everyone must follow to get the best deals while taking a personal loan.
- Calculating the Personal Loan EMI and Interest Rate
If you want to take a personal loan, determining the EMI and interest rate is an important step. The personal loan EMI calculator will calculate personal loan EMI using the principal borrowed, the interest rate, and the duration of the loan. The personal loan interest rate is based on various factors such as credit score, income, loan amount, and type of lender.
- Ascertaining the Interest Rate
Prior research by prospective borrowers to check personal loan interest rates, terms, and conditions and calculate personal loan EMI by visiting the sites of different lenders can serve greatly in landing a sweet deal on such loans. With the introduction of new-age fintech lenders and NBFCs, borrowers have a wide range of options to choose from.
- Choosing a Lender Wisely After Proper Research and Due Diligence
When choosing a lender, it is important to consider their terms and conditions, fees, customer service, processing time, and other factors. Banks and NBFCs may purportedly offer low personal loan interest rates, but certain terms and conditions may not be suitable for some borrowers due to specific norms.
- Maintaining a Robust Credit Score
A good credit score indicates a borrower’s financial discipline; therefore, it is important to maintain a good credit score and credit history. Paying bills on time, avoiding maxing out on credit cards, and avoiding unnecessary loans are ways to maintain a good credit score.
- Opt for Short Tenure Loans
Borrowers usually opt for long-term loans to reduce EMIs, which results in a high repayment as the principal will attract monthly interest. When you calculate personal loan EMI for the short term will keep the total amount in check and can be the best option for the borrowers. You can also use a personal loan calculator to calculate personal loan EMI.
- Ensure Regular Repayments
It’s important to make regular and timely repayments on your loan. It will help you to avoid late payments and other penalties. Also, a bad remark lowers the chance of future loan approval.
- Avoid Approaching Multiple Lenders
Finally, it’s important to avoid approaching different lenders simultaneously. It can make it seem like you are desperate for credit, making lenders cautious about extending credit. It’s best to approach one lender at a time and ask them to calculate personal loan EMI to ensure you get the best deal.
- Compare Personal Loan Interest Rate
Interest rates vary greatly amongst different lenders, so it pays to shop around and compare different loan offers. You should calculate personal loan EMI with the lowest personal loan interest rate possible that fits your needs and budget. Don’t forget to see the additional fees or charges applicable when comparing different loan offers.
- Examine the Fine Print
It’s important to examine the fine print of loan offers to ensure no hidden charges such as processing fees, late payment charges, or any other embedded charges that can inflate the total outflows.
- Know about 0% EMI Schemes.
Some lenders calculate personal loan EMI at a 0% personal loan interest rate in collaboration with lifestyle or consumer goods retailers. While these may sound appealing, you should know the additional costs. These usually include high file costs, processing charges, and other fees, which may not be revealed until the last minute.
Personal loans are a great way to finance various needs and goals. To ensure you get the best deal, it is important to understand your creditworthiness and personal loan interest rate and follow the 10 basic rules outlined above. With the right lender and loan product, you can benefit from a personal loan that works for your needs and budget. And don’t forget to calculate personal loan EMI with a personal loan calculator.