When applying for a personal loan, remember that the lender you choose often defines the offering you get and your overall borrowing experience. This is because apart from general aspects of a personal loan, which remain the same across the board, each lender normally has certain unique product features that add value to the offering. Similarly, rates and processing fees differ from one lender to the next and so, the cost of borrowing is also dependant on the lender. To get the best deal and make no mistake when picking a lender, follow these 4 guidelines.
Check the Maximum Loan Amount on Offer
Every lender has different internal policies that determine the quantum of funding you can avail via a personal loan. The sanction usually depends on factors such as your income, credit history and fixed obligations and is capped at a pre-determined limit. For instance, when you apply for the Bajaj Finserv Personal Loan, you get access to funding of up to Rs.25 lakh. That said, you can customize the offering as per your financial profile by using the personal loan eligibility and thereby avoid any inconveniences that might arise during the time of application.
Keep An Eye on Prepayment Policies
A part-prepayment involves paying off a portion of the principal before the due date and prepayment or a foreclosure implies servicing the entire debt early. Doing so is generally financially advantageous as you stand to save large amounts of interest. However, savings here come at the cost of prepayment charges. While these may appear to be small, they eat into your net gains and can negate the benefits of having surplus cash at hand. That’s why it’s important to pick a lender who levies little to no charges on prepayments. For example, when you opt for the Bajaj Finserv Flexi Personal Loan, you can make part-prepayments at nominal charges.
Compare Personal Loan Interest Rates and Processing Fees
In case of a personal loan, interest and processing fees combined generally constitute the cost of borrowing. So, as you compare lenders, ensure that you account for all charges and read the fine print to verify that there are no hidden costs involved. Nevertheless, since interest comprises much of your outgo, you can start sorting lenders based upon the interest rates offered. In actuality, even a 0.5% rate difference can amount to significantly lower net interest payments. To get an accurate figure, use the EMI calculator and forecast your monthly and total interest outgo.
Decide Basis Additional Benefits
Most lenders attach additional benefits to personal loans and thus make their offerings more attractive. For instance, Bajaj Finserv allows you to repay your loan over a flexible tenor of up to 60 months and offers a speedy 24-hour disbursal upon application verification.
Further, the flexi loan facility available here allows you to borrow from your sanction multiple times, whenever you need it. Each time you are charged interest only on the amount withdrawn. Additionally, you get the option to pay interest-only EMIs in the initial phase of your tenor.
With Bajaj Finserv you also get an online account management portal, a personal loan app, and a range of powerful calculators. From the regular EMI calculator to the foreclosure calculator and the flexi day-wise calculator, the online tools available to help you plan your finances effectively.
Lastly, Bajaj Finserv offers you instant approval on pre-approved offers. Check your pre-approved personal loan offer by sharing basic contact details. Doing so streamlines the entire application process and helps you get funding on customised terms.
With all this information in hand, you are sure to pick the right personal loan lender. From ensuring that you get access to a sizeable sanction to safeguarding your finances against unnecessary fees, starting off with the right lender makes for healthy, profitable borrowing.