A ‘personal’ loan is exactly what its name implies—it can be used for any personal expenses, like home improvements, a new car, a grand wedding, or a new personal computer. Many lenders and banks in Pakistan offer personal loans but their products may differ in terms, interest rates, and borrowing limits. Hence, you will need to consider those factors when selecting the best personal loan in Pakistan that truly fits your needs and your capacity to pay. Here are some tips that can help you choose a personal loan that will suit your needs:
Compile a list of reputable banks in Pakistan – Look them up online and get information about their personal loans. Information should come with the basics, like borrowing limit, terms, and interest rates. Always go for established and reputable banks instead of small, unheard-of lenders. By going for big lenders, you can be sure that they are regulated and that they have reasonable interest rates.
Study the details –Personal loans in Pakistan are ideal if you want a big amount of money that you can repay in a few years. While there are lenders that can provide a loan for a six-month period, but there are others that can go for up to a year. A loan’s maximum length can be seven years, but check to see if the lender can lend up to 10 years.
Understand the interest rates – Personal loans can come with a fixed rate throughout their duration. Hence, you know exactly what you will be paying for each month. Interest rates are lower on a larger loan.
Know your credit rating – Banks and lenders will want to check your credit, which they use as a measure of your capability to pay them. Poor credit will not necessarily mean that you cannot get a loan, but you may have to pay with a higher interest rate. However, you might find it difficult to get a loan if you are self-employed or a contractual employee. Hence, check on the bank’s terms and conditions.
Use a financial services comparison platform online – You can compare many different lenders and banks in Pakistan in one go when you use this type of service. Make sure it is free to use and that it comes with impartial reviews and recommendations, so you can make better and informed decisions, while saving money and time. Consider an online comparison platform that is supported by reputable personal loan providers in Pakistan like Bank Alfalah, UBL, HBL, and Standard Chartered.
About the Author
Mawazna.com is a Financial Services Comparison Platform in Pakistan that offers impartial comparison services of various banking & insurance and telecom (internet & broadband) products offered by Pakistani institutions. The services are 100% free for consumers. The products currently being offered include Comparison of car insurance, travel insurance, bank accounts, credit cards, loans, broadband services, and SME bank accounts.
