In these modern-day lifestyle financial emergencies have become an unavoidable part. Whether it’s a call of medical emergency that you need to take care of, or a lifestyle purchase, or refinancing the high-interest Credit Card, you can opt for a personal loan to meet the urgent fund requirements.
A personal loan allows you to access cash during an emergency. The personal loan application process less time especially if one goes for a personal loan online. This is among the major reasons behind the rising popularity of personal loans where you can avail the required funds through the smartphone or laptop. To cater to the increasing demand for personal loans, several personal loan providers in the market are offering loans at a pocket-friendly rate of interest.
How to Choose the Best Personal Loan Online?
An ample number of personal loan lenders can be found online. This has facilitated the loan seekers with a wide range of options to choose from but simultaneously this also has increased their stress of choosing the best personal loan online. To tease you a bit, few steps have been given below which may help you in choosing the best personal loan online.
1. Do an EMI Calculation
Before applying for a personal loan with a lender, try to know the approximate EMI which need to be paid for the borrowing. There are many free-to-use online personal loan EMI calculators are present on the website like Afinoz. Doing this can help you in bridging the gap between the monthly income and the monthly EMI. If the gap is less it means the EMI is more and the difference between income and EMI is less. In this case, you should never go for that much amount which will be hard for you to repay.
2. Approach a Shortlisted Lender
It is easy to choose a bank where you already have an account because you are familiar with the bank functioning and the bank also knows about your financial reliability. If you meet the eligibility criteria so it would be quite flexible to offer loans for your bank. But, if you are planning to contact other personal loan lenders, then first focus on the credibility of the lender and then check the loan cost, terms & conditions, repayment tenure, rate of interest, etc.
3. Know about all the Costs & Penalties
Before applying for a personal loan, it is essential to think pretty much about all the costs and charges associated with the loan procedure. Like:
- Handling Fee- Completely dependent on the lender, the preparing charge usually fluctuates and can go between 1-3% of the absolute loan sum.
- Prepayment / Foreclosure charges- If you pay the loan in advance either somewhat or completely before the due date, the lender may ask you to pay a strong expense for that as well.
- Late Payment Penalties- If you don’t make timely EMI payment, you will be liable to pay the penalties.
4. Check for the Required Documents
The best personal loans can be considered those that you can get with minimal documentation. For example, when you’re in a rush to get some cash, the exact opposite thing you need to do is submit many documents and fill in a ton of forms. With online loans, you don’t require to do that, and you can apply for a personal loan online while sitting at your home.
The best personal loan online can be one from your bank. As they will have all your own and money related subtleties. Hence don’t require to fret over an excess of verification. Also, nowadays with the help of online personal loan processing, you may get the cash in the record in the blink of an eye by any stretch of the imagination.
5. The Loan Amount
The best personal loan online can be one that is ready to offer you the exact amount you required. If you need a personal loan of Rs. 10 lakhs, there’s no point going to a bank that is offering you only Rs. 5 lakhs.
Personal Loan Eligibility Criteria
Lender follows flexible eligibility criteria for the processing of personal loans based on various factors. Following are the generic personal loan eligibility requirements that an applicant must stand on to make sure that the application is successful:
- Employment: A borrower should either be self-employed or a salaried individual working with a private or a public-sector undertaking including central, state, or local bodies.
- Age: An applicant’s age should a minimum of 21 years and a maximum of 60 years at the time of loan application.
- Working Experiencing: A borrower should have working experience of a minimum of 2 years and also working in the current organization for the last 1 year.
- Income: The generic income of an applicant required for a personal loan is minimum Rs. 15,000 as net income every month. Like other factors, it also varies based on things like the city in one residing, etc.