A few factors for personal loan comparison in India

Posted by rupesh on December 14th, 2018

The cost of living and life itself has increased greatly in recent years. People are struggling to meet their basic needs of food, clothing, and shelter. And in midst of everything, what if, you faced with an unprecedented medical emergency. The medical bills are something which can never be neglected; you have to pay these bills one way or the other. Thus, at such times, you have the option to either opt for a personal loan through a financial institution or a loan shark. The interest rates charged by the traditional financiers are way higher than the ones given out by banks and NBFCs (non-banking financial companies). You have another option of opting to borrow money from family and friends; however, you would rather choose to obtain a personal loan and save face than borrow money from your closed ones. Personal loan comparison helps us to find the best source to borrow money from.

A personal loan is an unsecured form of loan wherein, the banks and NBFCs (non-banking financial companies) provide financial assistance without any collateral. You can make use of this money to take care of any and all of your financial needs; as long as they are legal. You can pay off those medical bills or even consolidate credit card debt of yours. A few factors for personal loan comparison are here as follows:

• Interest rates: Comparison of interest rates will help you to find the best personal loan lender out there. Increase in the flow of cash has resulted in the rise of many financial institutions providing monetary assistance. Thus, make sure that you compare the interest rates of the various lenders; aggregator sites will help you out with that. The financial institutions also provide tools such as EMI calculator; this tool will help you to compare interest rates as well.
• Tenure: The repayment of the personal loans is done in the flexible form of EMIs (equated monthly installments). These EMIs are calculated on the basis of the principal amount borrowed by you, the interest rates charged by the financial institutions and the repayment tenure opted by you. This tenure helps you to plan out your current and future repayments in advance. Thus, in the case of personal loan comparison choose the best repayment tenure for yourself.
• The reputation of the financial institution: Make sure that you check the reputation of the financial institution before opting for that particular bank or NBFC (non-banking financial company). Checking the reviews on the social media and aggregator sites will help you do that.

Eligibility criteria: The eligibility criterion is a set of pre-requisite requirements that you have to meet to make use of the loan amount. And every financial institution has different eligibility criteria in place. One financial institution may sanction your loan at a lower credit score, while others might reject it. Thus, apply for a financial institution whose eligibility criteria are the most suitable for you. Therefore, checking eligibility criteria will further help you out with personal loan comparison.