A financing emergency may hit you from the blue. Even though you may have an emergency funds account to cater to such situations, it may at times fail to suffice your needs. In such situations, an instant personal loan can come to your aid.
An instant personal loan is an unsecured loan that comes with zero restriction to end-use. The lender does not ask you the purpose for applying this loan. Whether you apply through an instant loan app, or in the traditional way, you receive the loan amount into your account. You are free to use this amount in any way you deem fit.This makes these loans highly feasible for multi-purpose use.
However, before applying for an instant personal loan, you must find the best loan offers that fit into your financial situation. Visit different lenders and compare their offers, analyse your needs and match their offers. There are many crucial steps that you must not miss when choosing your lending partner.
Read on to discover 5 smart tips to find the best personal loan for your financial situation.
5 Smart Tips to Find the Best Personal Loan for Your Financial Situation
Look for financing options from reputed lenders
Reputed lenders offer some great benefits on your instant personal loan. With a customer-centric approach, these lenders focus on meeting theircustomer’sneed. They pack some of the best features and offer a pleasant financing experience to their customers.
They offer easy online application and affordable EMI payments. You also get convenient balance transfer facilities and easy closure of the loan account on completion of the loan tenure. They also offer prompt customer service, quick query resolutions and real time assistance.In addition to this, you can be rest assured that these lenders do not levy hidden costs and additional charges on your loan.
Check interest rate and EMI affordability
The interest rate levied on the loan is one of the most crucial aspects of your loan. While checking out the available offers you must note the interest rates offered by different lenders.Make sure to choose a lender who offers you the required loan amount at the lowest interest rate.
In addition to the interest rate, you must also check your EMI affordability. Your EMI depends on your loan amount, loan tenure and the interest rate levied by the lender. Ideally, your total debt obligations should not be more than 50 % of your total monthly income. Having high EMIs will put a strain on your monthly budget. This puts you at higher risk of financial mismanagement and loan defaults.
Find a loan with an extended tenure for repayment flexibility
While looking for instant personal loans, you must also check the loan tenure offered by the lender. Most lenders offer flexible loan tenure of 12 to 60 months. This allows you to make better borrowing decisions and makes your loan EMI highly affordable.
Ideally, when you avail the loan through an instant loan app, you should try to keep the loan tenure within 2 years. Repaying your debt sooner will not only have you save on the interest pay outs, but will also increase your eligibility for future borrowings.
Check if the financing option comes with quick approval
Another aspect that makes an instant personal loan a great financing avenue is the prompt processing. Check for the time taken by the lender to process the loan application. For the best personal loan options, processing of applications are quick with minimal documentation.
Most online loan apps, offers instant approvals and quick processing within a day or two. You just have to meet the eligibility rules and submit the necessary documentscorrectly. Your loan will get disbursed within 48 hours or less.
Check customer reviews and their customer service
This is one of the most important things that you need to check while choosing your loan partner. Spare some time to read the reviews posted by other borrowers. This will help you understand their experience and discover any loopholes on the lender’s side.
You must also make sure that the lender of your choice has a prompt customer service facility. You may encounter many queries while servicing the loan, as such not able to reach out to the lender is quite frustrating. Most online loan apps offer 24 by 7 assistance to their customers. Most reputed lender also maintain a team dedicated to customer queries.
Today, availing a personal loan is much easier and convenient. All you need to have is a stable monthly income of Rs. 15,000 or more. This may often tempt you to make reckless borrowing. But it is very important to make thoughtful and prudent decisions when it comes to managing your finances.
Make sure to analyse your needs critically, assess the available offers and calculate your loan affordability before submitting your application for an instant personal loan. Check out the offers from different lenders, including banks and instant loan apps, tofind thebest personal loan for your financial situation.