Looking for a personal loan? Dos and don’ts guide for the accurate personal loan comparison!
As most finance experts would suggest, personal loans are the ideal fund instrument that can be a saving grace at a time when you need an urgent financial aid. Although it might seem difficult to take out time to do the personal loan comparison when you have a financial crisis to deal with! But with the right tools like personal loan EMI and eligibility calculators, you can do the loan aggregating task in the shortest time possible.
Taking any type of loan is indeed a crucial decision to make and hence personal loan comparison is mandatory. And to make sure the time you invest in finding the ideal the personal loan, you can follow these dos and don’ts before you apply for it!
Don’t over quote it!
The limit for the loan amount will be decided as per your eligibility and financial capability to repay the loan. Some people who have considerably good credit score tend to quote extra loan amount than what is required! Although the loan lending party wouldn’t ask for what purpose and how much loan amount you want but the applicant should just stick to the managing expense. In such case, your greed can cause to pay extra interest amount while paying the principal amount. Hence it is wise to begin your apnapaisa personal loan comparison task by assessing your fund need to get a favorable personal loan product.
Some applicants also quote less loan amount than what their eligibility allow them to expect. Hence it would be better to use a personal loan eligibility calculator to assess your financial withstanding.
Mind the credit score!
We can’t blame you if you apply for a loan without a proper personal loan comparison if a financial crisis like medical bills doesn’t allow much time to take a sound financial decision! But most personal loan lending companies offer a reduction in the rate of interest if you have a good credit history to your title. If the loan amount suggested by the loan lender isn’t sufficient as per your urgent needs, with a good CIBIL score you can stretch the loan limit. Hence always keep your CIBIL score above 750 to be in the good candidate category.
Just focusing on getting the best deal!
It is safe to say most of our strategies for personal loan comparison are to find a loan product with the lowest rate of interest and an ample number of EMI options to choose. This strategy might seem beneficial but it can possibly blind you to read the fine print about the loan product. There are different types of charges you need to mind before applying for a personal loan. While processing fees can be charged around 1% to 2% with additional GST charges, one should also refer to foreclosure charges, default interest rates and other charges regarding documentation and stamp duty on CIBIL report.
Don’t pick a longer tenure period!
Some loan applicants intentionally look for loan options with longer tenure period while on the task of personal loan comparison! It might seem a legit strategy but there is a difference between a personal loan and a housing loan. In terms of personal loans, only the loan lender will be at the beneficial side as you will be paying more on interest amount, till the tenure period ends. Hence it would be wise to use a personal loan EMI calculator which will also help you choose the right tenure as per your economic profile.
