Want to avoid a loan burden? Consider doing personal loans comparison before applying for it!
Taking a loan will always be a cautious decision one can take as the person would be repaying its consequences in installments, every month! And especially when you consider the rate of interest charged on personal loan are moderately higher, it makes sense to a lot of loan aspirant to do personal loans comparison before choosing a loan product. It is good news for those financially helpless aspirants that many public and private banks and other Non-Bank Financial Companies (NBFC) that offer a wide range of personal loans at super-fast approval rate!
The personal loans comparison process is basically a filtration process, which takes out useless personal loan options out of the list and gives you the loan product that matters the most. And if you have the same intentions to save yourself from loan burden, you can follow below tips!
Little self-assessment first!
This tip is applicable for every type of loan products! So before you start you’re the apnapaisa personal loans comparison routine begin with estimating your loan eligibility and your borrowing capacity. Since personal loans are unsecured kind of loan, which means the maximum loan amount the loan lender would be sanctioning will be judged on the basis of monthly income your credit history. But most loan applicants quote inflated loan amount credibility-wise they were at favorable place. This should be avoided as the rate of interest is charged on the principle amount you borrow. So if you increase the prinicipal amount the interest payment would increase inversely.
Don’t make everything about the rate of interest!
This is one of the common mistakes loan aspirants make while doing personal loans comparison! Indeed the rate of interest on the personal loans is generally higher, but that doesn’t mean you should be making a big deal about it. There are other factors in the personal loan product like processing charges which can vary from one loan lender to another. The processing for availing a personal loan can go from 1% to 2% and course GST will also be charged on it. You should also go through other charges like foreclosure charges and also the documentation charges.
The power of credit score!
One can easily forget to mind the benefit of your credit score while doing personal loans comparison! In a simple term, your CIBIL score represent how much brownie points you’ve collected while repaying each loan you took and remain stable in paying the loan amount. The limit stretching ability of a good credit score mind entice you to over-quote the loan amount, but it can also give your ability to negotiate and get reduced rate of interest. And since the interest rates are moderate thanks to CIBIL score, it would be less of a burden to repay.
Choose a shorter tenure!
If possible of course! The availed options to choose tenure period on personal loans is up to 5 years and yet some applicants choose maximum tenure options availed to minimize the interest payment. We get applicants choose such longer tenures to make it comfortable to follow the installment cycle. But such applicant end up finding themselves under silent loan burden, as if you calculate how much interest amount you’ll be paying at the end of the tenure will give a shocker. The trick is to choose loan tenure as per your economic withstanding. Also mind the fact, the economic condition will eventually get better; hence you can ever choose a shorter tenure period to be free early from the loan burden!
