A personal loan is easy to access, making it a lifeboat for when you land yourself in a pickle or don’t have the savings you need. To ensure absolute convenience however, it’s important to select the right personal loan. Here’s how to cherry-pick the best one.
Tally purpose with interest rate
This is the first thing to consider. If you need a loan for an emergency, you’re likely to make do with a high interest rate in exchange for quick disbursal. Conversely, if you’re hoping to consolidate debt or furnish your home, the interest rate is crucial. If it’s not affordable, you’re going to spend more than you need to.
Check repayment terms
A loan is useful only if you can repay it with ease. So, check the flexibility of the tenor and charges on pre-payment and foreclosure. The higher these charges are, the more difficult it will be to repay the loan quickly. This applies to other charges too. If they are high, they will cancel the benefit of a low interest rate.
Factor in convenience
Features like applying for a loan online, submitting scant documents and getting disbursal in a few hours take this loan to the next level. Watch out for such perks to spot a true winner.
Instead of opting for the first option that comes your way, follow these 3 guidelines to pick the most cost-effective personal loan.