Making a smart move and choosing the right personal loan can be somewhat tricky. It takes a lot of time, patience, enough research and comparing personal loan companies with one another. A customer can only apply for a personal loan if he/she meets the following personal eligibility criteria.
Eligibility for personal loan
- Any resident of India working in a Multinational company, public or private sectors and having an age ranging between 21-58 years can avail a personal loan.
- A person having a minimum monthly salary between Rs. 15,000-20,000
- An individual who is an active resident of a city for at least a year.
- CIBIL score should be above 750.
Choosing the right personal loan
Here are some general ideas we should keep in mind before applying for the right personal loan:
- Rate of interest: The first thing to keep in mind while applying for a personal loan is the interest rate. Different banks have different interest rates to offer. It’s more convenient to do a bit of homework and then decide which loan to finally settle for as the interest rates may hugely vary. Checking out the different interest rates online is easy and less time-consuming. However, a lot of banks offer different interest to different customers which depends on how trustworthy their income stream is. Interest rates are very crucial as a small percentage of difference may sum up to our loan cost over some time.
- No collateral: Personal loans are unsecured credit instruments. Customers do not have to put up collateral for getting a personal loan. This will be a good option if customers are not willing to sacrifice any assets for getting a loan in return. Secured loans are a more favourable option if a customer is willing to pledge their assets at a relatively lower interest rate. In this case, we do not have to worry about poor credit scores. If this option doesn’t work, then unsecured loans should be an option. You can get to know more about availing a personal loan here: https://upwards.in/personal-loan
- n: Getting a personal loan shouldn’t be a headache and it would require the least amount of fuss. The last thing we want to do is waste our time in filling forms and documents for getting cash. With just a click on the Internet, we can easily apply for a loan while sitting at home. A customer can get a personal loan from his/her preferred bank as they don’t need to provide or verify their personal details as the ban already possess them.
- Time Period: One of the most essential things to keep in mind is the time period of the loan. If a loan matches the preferred time requirements of a customer, they will probably be inclined towards that loan whether they need it for a short or long period of time. The amount of EMIs a customer will pay will obviously depend on the tenure. The amount of personal loan a customer has to pay can easily be calculated by using a Personal Loan Calculator. A longer tenure means lower EMIs but more interest payouts.
- Amount of Loan: If a customer needs a loan of Rs 30 lacs then there is no point of going to a bank whose upper limit is 20 lacs.
- Processing Costs: The rate of interest of a loan and the processing fee determine the total cost of loans. A customer should very carefully consider both factors before they come to a final decision. Some banks have a low processing fee which will lower the burden of loans of a customer.
Following the aforementioned points, you can choose the right personal loan that suits best to your requirements, which in turn, will help you to be financially stable.
