A personal loan is a go-to option in times of financial crunch. Whenever you need a lump sum amount for specific expenditures, personal loans do help us out. They are collateral-free loans. So, borrowers don’t require a security for the same. The best part is there are no restrictions on the manner they can be used. An individual can use the money obtained from a personal loan for any of his needs. Nowadays, you can also obtain an instant personal loan online, which offers even greater flexibility.
Features of a Good Personal Loan
Since there has been a tremendous rise in the number of lenders, it’s essential to find a suitable one. Even with a single firm, you will find a variety of personal loan offers. However, you need to assess them on a few parameters and pick the best one. Here are the things to take into account.
- Low-interest with no hidden charges: Interest rates are the first thing your eye should meet. First, find the prevailing market rate. Then compare it with what is on offer. Higher interest rates will become a burden. So, reach out to lenders who offer pocket-friendly deals. Recognised firms like Fibe always charge minimally. In the case of Fibe, interests are calculated on a daily basis @ Rs.9/day. There are no additional or hidden fees too. Hidden fees are an unhealthy practice. So, refrain from firms that adopt such policies.
- Flexibility: A loan is of no use if it increases financial stress. So, a good personal loan must offer flexible repayment options. It will be best if the lender allows us to choose a tenure. Monthly instalments should be of your convenience. They must fit into your budget. It will be harsh if you have to trim down your expenses to meet EMI deadlines.
- No Prepayment Penalties: It is always a wise thing to repay your loans on or before time. Prepaying a loan not only reduces expenses, but also boosts your credit score. Moreover, you can save a good amount payable as interests only. Go for loans that do not discourage prepayments. Additional charges or penalties are undesirable. Hence, cross-check regarding the same before applying for a loan.
How to Compare Personal Loans
Consider the following points to compare and pick a suitable personal loan.
Check the eligibility criteria: Prior to filing your personal loan application, assess the lender’s terms and conditions. Read them properly and take enough time to understand your eligibility. The requirements of every lender vary, so see where your interests are taken care of.
Find the borrowing limits: Some firms have strict lending limits. There can be caps on both minimum and maximum loan amounts. Before applying for the loan, see if the amount you need lies within this band. Borrowing less or more than your requirement is not a good idea.
Know the loan disbursal time: After the loan approval, lenders may take some time to hand out the loan amount. It is important that this waiting period is as small as possible. A firm like Fibe provides an instant personal loan online. Go with such lenders, as the amount gets credited in a couple of hours.
Loan Application Process
Follow the steps mentioned below to get an instant personal loan online.
- Find out how much you truly require: There are two scenarios here. First, if you borrow excessively, you may end up hurting your finances. A higher loan amount means higher repayment costs. Secondly, it is a good idea to take a loan, repay it timely and then take another one. So, carefully calculate how much is sufficient. Avoid taking a huge loan amount unless you really need it.
- Fill out the application form: Visit the website of the concerned lender and jump to the loans section. You can also download its app on your smartphone. For instance, Fibe designed one of the best instant loan app in India. Then fill out the loan application form. Mention your name, date of birth, address, mobile number and bank account details.
- Complete your KYC: The “Know your customer” (KYC) process is a mandatory step. For this, you will have to provide basic personal details along with supporting documents. Simply scan and upload your aadhaar card, pan card, driving licence or passport.
- Submit your loan application: Upon mentioning the loan amount and tenure, you can complete the process. Review your loan application and submit it. Just click on proceed and enter the one-time passwords sent to your email or message inbox. Finally, click on submit.
Once you submit your personal application, you will directly receive the loan amount in your bank account. Online personal loans get approved within minutes. So, you shall get your desired loan in a very short interval of time.