#AD
When it comes to Personal Loans, the market is brimming with so many offers. Because of its diverse usage, the demand for personal loans is always growing. It is hazy for the average customer to pick the best loan amidst the multitude of options. It is where loan comparison websites come into the picture. Using a loan comparison website, you can compare different lenders using various parameters.
Different institutions have different criteria for personal loans. The following article throws light on important things to consider while comparing loans from multiple lenders.
Factors to consider while comparing loans
1. Interest rate
The Interest rate on a personal loan is one of the primary factors to consider. A higher interest rate means a higher EMI. Personal loan interest rates can vary from lender to lender. It is also important to compare the annual percentage rate (APR) other than the interest, as the APR would include fees other than interest. Please note that your credit score can also affect the interest rate at which you get the loan. It is always a good idea to check your credit score before applying for a loan. Choose the bank that offers you the best interest rate suited to your creditworthiness.
2. Loan Tenure
Check the loan tenure and amount offered by multiple lenders. While a long tenure may help you secure a lower EMI, at the same time, you will be paying more interest charges. Shorter tenures may result in higher EMIs but can relieve the stress of the loan sooner
3. Fees and Charges
Aside from the loan, tenure, and amount, there are many other charges associated with a personal loan. Processing fees, Late Payment charges, preclosure charges, and other administrative charges have to be taken into account. Look for lenders with minimal charges so that your loan doesn’t cost you much in the end. It is wise to enquire about fee exemptions as certain lenders offer exemptions on processing fees and other perks like No-cost EMI.
4. Eligibility Criteria
Every lender has specific eligibility criteria for personal loans, including loan amount, age, income, employment status, and current debts. You should clearly understand the eligibility requirements of each lender and choose the one that aligns with your financial goals
5. Credit Score requirement
Every personal loan lender sanctions loans to the borrower based on his credit score. A Credit score is an indicator of a person’s creditworthiness. Generally, banks and NBFCs require a credit score of 750+ to process the loan. Certain banks provide personal loans even for customers below that specified credit score. However, it differs from lender to lender. Keeping in too many loan applications at a time can reduce your credit score. It is a good idea to do proper research before applying
6. The reputation of the lender
The other important factor to consider is the reputation of the lender. With so many lending options available these days, it is difficult for the customer to select the best one. Some lenders offer discounted interest rates and other additional perks. Also, research the customer reviews of the lending institution before proceeding to apply.
Conclusion
A trusted loan aggregator website like Fincover allows you to compare multiple loan quotes in their platform. You can use their platform to compare different parameters associated with Personal Loans such as interest, tenure, loan amount, fees, and other charges. Also, make use of their EMI calculator so that you will get a thorough breakdown of the EMIs over the entire course of the loan. Moreover, the application process is very simple. All you need to do is check your eligibility and apply for the right lender and your money will be credited to your account in the shortest time possible.
