Due to the COVID-19 pandemic, there has been a rise in pay cuts and unemployment. This has led to a massive reduction in the income of millions of Indians. Forcing a majority of people to take a personal loan. Another reason why more are preferring to take a personal loan is because of the tempting offers and convenience which it offers.
This loan is widely available and selecting one from all the available options /lenders is a tough task. Once a person decides to take a personal loan, the first question which comes to his/her mind is – which personal loan is the best?
And if you are the one who has the same question, then you are in the right place!
Let’s start: Personal loans are very common these days, the reason is they offer great convenience to its consumers which includes:
- Flexible repayment tenure ranging from one to 2 years.
- Huge loan amount starting from ₹50,000 to ₹50,00,000
- Online loan processing
- No end-use restriction
- No physical documentation process
- Minimum eligibility criteria required
However, the need for all who apply for a personal loan is the same which is to get money, but still, the requirement varies. And based on the requirements we can define the best personal loan for one.
For example- the one who needs a small loan amount can go with a lender who is offering a personal loan on a monthly interest basis at minimal eligibility criteria required.
But for the one who needs a big loan amount cannot go with the same lender. So, possibly the loan which is best for one cannot be best for others with the different requirements at the same time.
How to select the best personal loan
To know which personal loan is the best, you need to first analyze your requirements and then start looking for the lender.
Once you know your requirements you can easily compare among the available options and select one which suits best for your requirements.
Steps to select your personal loan lender:
- Know your requirements in terms of the money you need, affordable EMI, and tenure.
- Compare among all the available options/lenders for better offers interest rate and processing fees.
- Use a personal loan EMI calculator to know your estimated EMI, this will help you analyze your affordability.
- Look for the terms and conditions of the loan which suits you.
- Know the pre-payment and part-payment terms.
- Read the fine prints/loan agreement properly.
But, the decision to borrow money or take a loan is one that shouldn’t be taken lightly. Borrowing a loan may seem easy but repaying the same is never that easy. It costs a huge amount as the money you borrow needs to be repaid along with interest. Surely, you can apply for a personal loan and get your hands on cash in a matter of days, but that doesn’t mean you necessarily should go for it.
However, if you are in an inescapable situation and need money urgently you can go for it. But in a hurry, don’t forget to compare personal loan offerings in order to get the best personal loan for yourself.