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Some parameters to help you choose right personal loan offers


Digital lending in India has taken over the traditional loan lenders who would dupe borrower with exorbitant interest rates, and no flexible ways to repay back the money. Technology has played an important role in the rise of digital lending wherein borrower can apply online and get quick loan sanctions. The digitalized loan application process, attractive interest rates, quick e-sanctions, hassle-free documentation, and instant disbursal have made personal loans online the most preferred source of funding for the people across India. They don't want to visit banks or financial companies to fill up lengthy forms, submit a pile of documents and wait for months to know the loan status.

Top banks and non-banking finance companies have joined the digital wing and introduced customized loan products for the borrower. In fact, the competition is quite fierce and borrowers are enjoying quick and easy access to funds. For the consumer, there are a plethora of options, and it would be confusing to choose which personal loan offering is best suited as per the needs and financial requirements.

Thus, it’s the aggregator sites that will let you do personal loan comparison right from the cozy corner of your home or offices. It will save your time and energy. You can compare quotes in terms of interest rates, processing fee, loan disbursal value, disbursal time, loan tenure and more. Get the best of the quotes and apply for personal loans today!

Here are 5 parameters that would help you choose the right personal loan offers:
Borrowing costs
Comparison websites help the applicant to get complete idea on current interest rates provided by Banks or NBFCs to the borrowers. They would charge prepayment charges if you settle the dues before the tenure. It ranges between 1-5 years. Loan processing charge, late EMI charge, cheque bounce charges are additional charge lender would levy on you. These banks and financial institutions who partner with aggregator sites come up with promotional offers to increase the popularity of their personal loan products.

Eligibility
There are certain factors lenders will evaluate to sanction the loan amount and interest rates such as income source, number of dependents, fixed obligation, credit score, and more. Every lender will set its own eligibility criteria. You can read the criteria of the respective lender by visiting the site or branch personally.

Some other common factors include: Whether the applicant is salaried or not? His or her income should be above Rs15,000 for semi-urban towns and Rs 25,000 for urban cities, age should be between 21-55 years, Should be employed for 1-2 years, etc. 
EMI and loan Tenure

EMI and loan tenure are co-related. The higher EMI payment per month will reduce your loan tenure, and opting for longer tenure will reduce your monthly EMIs. It's better to set a realistic EMI amounts minus your monthly expenditure so that there is no burden on your monthly budget. Experts say you should utilize only 20-30% of your monthly income towards loan repayment else it would put a strain on your wallet.

Loan Approval Time 
Once you shortlist the lender, you would be in a hurry to make an application. Top banks and firms will sanction loan in a couple of minutes and disburse in 3-4 working days. Check the reputation of the lenders, read reviews of customers and choose your bank or financial firm. During a medical emergency or trip abroad, you need quick funds. Thus, your loan sanction and disbursal timespan prove crucial while doing personal loan comparison.

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