Personal loans can be obtained to meet all your unexpected expenditures that can arise out of various reasons from travelling to shopping, to organise and enjoy a dream wedding, to repay your hand loans, buying consumer items, to buy some newly introduced gadget in market, for renovation of house, educational expenses or any other personal expenses. If you wish to withdraw higher loan amount, you need to pay more EMIs for longer period of time. While planning to avail personal loan from any bank don’t forget to check out the following factors. Given below are the check lists.
First and foremost is the loan amount. You yourself are aware of your requirement. You can take as much as amount you need to deal with your financial needs depending on your eligibility. However, do not opt for higher loan amount just because you are eligible for it. Since you have to fetch more money for higher rate of interest. It is better to think and decide for loan amount before apealing for it.
Every bank charges processing fees for a personal loan. Nominal processing fees of 2 -3% is charged by every bank. This amount is deducted from the loan amount before it is deposited in customer’s bank account. Don’t forget to compare the processing fees for each bank before applying for the loan. If the customer is an account holder with the respective bank, some banks charges low processing fees from its customers.
Plan to foreclose your loan prior to its repayment tenure. It’s very important for you to check the foreclosure charges before you submit your application to any bank, so that you do not miss out on personal loan offers with NIL fore-closure charges. Customer can pre close their loan before the end of loan tenure, but not all banks will allow you and will pose a penalty fees for the fore-closure. Foreclosure charges levied by certain banks range from 2% to 5 % of the outstanding balance as on date, however not all banks will allow to pre-close the loan. Certain banks allow to pre close the loan only after the completion of the six months to one year of the tenure, whereas the other banks will allow you to pre-close your loan even after the first installment of your loan.
EMI and TENURE
Before applying for the loan, make sure that you check the amount of your EMI, rate of interest and the loan tenure. If you can, it is better to pay higher EMI for shorter tenure period. No one likes to pay too much money towards interest. Choose the EMI amount very carefully as it affects the monthly expenses. Plan properly the amount which you can pay comfortably.
This is one of the important factors to be checked. Interest rate varies from bank to bank. Choose the bank which charge you lower rate of interest. Rate of interest on personal loan commonly starts from 11.99%. Based on these criteria EMI and tenure will be decided.
Other charges such as cheque bounce charges, swap charges, penal charges etc. are levied by the bank in cases where the bank observes any irregularity in payment, due to non-payment of EMI, or bouncing of Penalty charges levied by the bank on account of non-payment vary from bank to bank. It is always better to check all these charges before you plan to avail a Personal loan.
All the above mentioned factors are very important to be checked before you apply for Personal loan from any bank. What you are waiting for? Just log on to our portal and allow us to give you our best services absolutely free.