How to choose the best personal loan for you

Updated: Jul 04, 2019 4:01 PM

A personal loan is a convenient financial resource that you can turn to whenever you’re in a pinch.

How to choose the best personal loan for youA major benefit of availing a personal loan is that the sanction has no spending constraints.

A personal loan is a convenient financial resource that you can turn to whenever you’re in a pinch. This unsecured loan is fairly easy to qualify for and obtain due to the fact that it does not require you to pledge any collateral. Some lenders even offer instant approval on personal loans and allow you to enjoy the full sanction within just 24 hours.

A major benefit of availing a personal loan is that the sanction has no spending constraints. This means that you can use the funds to meet any financial obligation – from financing a wedding, meeting emergency payments or planning a vacation abroad.

The only task before you, then, is to pick personal loan that suits you best. And while competition among lenders is high, there are ways to narrow down the list. Here are 4 factors to pay attention to, so that you can be sure of choosing the best personal loan for you.

Look for a lender with easy eligibility criteria

When trying to get the best personal loan in the market, always be on the lookout for a lender that has simple, easy-to-meet eligibility criteria. This reduces the effort required to acquire funds and speeds up the verification and approval process.

For example, to qualify for a Bajaj Finserv Personal Loan, you need to be between 23 and 55 years of age, working in a reputed public or private organisation, reside in India and maintain a reasonable monthly salary (Your salary requirement depends on the city you reside in).

Check and compare lenders based on their interest rate

The interest rate is a vital aspect to consider when you are searching for the best personal loan. It directly affects the amount of interest you pay and therefore determines the affordability of the loan.

Personal loan interest rates are set by the lender based on factors such as your credit score and repayment ability. Generally, individuals with a higher score are considered more reliable. However, if your score is sub-par, lenders are likely to offer you a lower sanction, or even reject your application.

You can check affordability simply by making use of an EMI calculator. This tool accurately computes your monthly payments and even shows you the total interest that you will pay towards the loan, therefore allowing you to pick the right loan.

Enquire about the additional fees and charges

Before settling on a loan, it is imperative that you check the fees apart from the interest rate. Depending on the lender, these may be high, and you may end up spending more than you intended to.

So, don’t pick an option simply based on a low personal loan interest rate. Consider factors like processing fees, bounce charges, penal interest, and secure fees as well.

Ensure repayment flexibility

To have the best borrowing experience, ensure you have a flexible tenor for repayment. This lets you spread your EMIs out over a convenient period, so you can repay the loan as per what you can afford, thereby reducing the chances of default.

Performing these checks is sure to help you get the best personal loan for your financial profile. With a flexi facility on loans up to Rs.25 lakh, a Bajaj Finserv Personal Loan can be the perfect financial tool to help you meet your financial obligations.

Watch video: Bajaj Finserv Personal Loan features & benefits | Instant online approval in 5 minutes

This personal loan enables you to pay interest-only EMIs, which can help you reduce your monthly instalments by up to 45%. Moreover, you can borrow in parts and pay interest only on the sum you use.

Apart from this, you can have the sanction disbursed to your bank account within just 24 hours of approval.

(This article is sponsored by Bajaj Finserv)

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