You have decided to take a personal loan but are spoilt for choices with various institutions offering it. How do you make a planned choice? Personal loan comparison before taking a personal loan is a vital step to ensure you make the most of your choice. Many first time personal loan takers may feel it to be a time consuming and unnecessary procedure, but let us tell you that, the more you research, the clearer you are about what you are getting into. Fortunately for you, we have compiled the top things you need to look out for when comparing personal loans.
This is a very important aspect you must compare with different personal loans before making your choice. There are lenders who offer you short tenured loans. Be wise in making this decision because, if the tenure is shorter it could become tiring for you to make the repayments in shorter intervals. Choose financial institutions that offer longer tenures, which in turn will make it easy for you to repay your loan.
The foremost thing that you must do when comparing personal loan is to compare the amount that is offered. Not every lender will have the same upper and lower limit on their personal loan.
Interest Rate Comparison
The other important thing that borrowers usually check for is the interest rates that various lenders offer. Sometimes the loan may come to you at a cheap rate but it may not actually have the financial solution quality that loans with higher rate of interest offer. Therefore, it is necessary that you make a thorough study as to what will suit your needs before zeroing in on the loan that works for you.
Get a Quotation
Pick up quotations from lenders to get an idea as to what they have to offer in terms of loan amounts, interest, processing fee and others. This will help you make a wise choice.
This usually amounts to 1 or 2 percent of your loan amount. This is the amount you have to pay to the lender for applying for a personal loan. This is a non-refundable fee, which means that you will not get this amount back even if your loan is rejected by the lender. The lender uses this fee to cover the evaluation cost. Look out for the time in year when lenders waive the processing fee. There are also lenders who could waive this fee for you if you have a good financial profile or if you have borrowed from them earlier.
Personal Loans come with their list of charges and these charges vary from one lender to another. Thus it is important to know what each lender charges. These charges refer to late payment penalty, document handling charges, prepayment charges among others.
Make Use Of An Aggregator Site
You can find all the information you need for a personal loan in a personal loan aggregator sites. These sites give you a list of the top loans and also give information on their interest rates, tenures, processing fee, loan amounts and necessary charges.