Personal Loans – Useful Tips
If you would like to take a personal loan for meeting your requirements then you should do a bit of research about the personal loans, its eligibility, interest rates of various banks and other important information. You may follow the below mentioned tips prior to taking the personal loan as they may save you from unnecessary hurdles later on and helps you in taking the informed decision.
Aware of the applicable charges – You should be aware of the various charges and fees levied on every step of the loan processing. You should not look only at the personal loan interest rate for determining the cost of the loan. You can also look at the charges applied by the lender in the process. Some of the commonly applied charges are processing fees, cheque bounce charges, prepayment fees, non payment penalties and documentation charges. As per your own requirements, you can decide to pay the loan earlier than the tenure and in that case, you can compare the prepayment fees applied across all loans.
Increase eligibility by combining incomes – You can increase the eligibility of taking higher loan amount by combining the incomes of your spouse or your parents. It will increase the amount of personal loan granted to you.
Decide the repayment period as per your needs – You should select a personal loan repayment period as well as schedule that suits your requirements well. You can select a smaller repayment period in case you expect that you will have the money in the short run.
Get discounts on lending rate by using the existing relationships – You can get discounts on the lending rate if you have an existing banking or a loan relationship. You can negotiate discounts on the lending rate on the basis of your proven track record. The bank can consider the healthy balances in your savings account / fixed deposit or your proven track record of repayment for considering that you have sound financial standing.
Purchase Loan Protector Insurance – Nowadays, there are many banks and NBFCs that provide group life insurance as loan protector insurance. By purchasing this insurance, you can ensure that the insurance company pays the lender in event of any unfortunate incident. It is an affordable way of offering protection to the dependants from your liabilities.
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