5 Things to Look for in a Personal Loan Offer

Today, personal loans have become the go-to solution for anyone looking to borrow money in a hassle-free manner. As you may already know, a personal loan is an unsecured loan that is typically offered to salaried professionals to help them take care of their financial needs. Since it is unsecured, you don’t have to worry about arranging for any security/collateral against the loan. This is the main reason many people flock to personal loan companies when they need quick emergency funds. The documentation involved is minimal, and the funds are directly transferred to your bank account.

To get a personal loan easily and efficiently, the personal loan provider you select is also very important. While going through personal loan offers, there are certain factors you need to consider. Of course, what constitutes the ‘best’ loan for you depends on your situation. Even then, here are 5 things to check:

1. Interest Rates

While comparing personal loan offers sent by different loan companies, you always need to look for the ones that have the lowest interest rate. You don’t need to read this to know that, of course, but the fact is that the interest rate will have a significant influence on the total cost of your personal loan. So, it’s important to look for a personal loan that not only meets all your requirements but also has the lowest rate possible (keeping all your requirements in mind).

2. Prepayment Penalties

As you may already know, a prepayment penalty is a fee charged when you pay your personal loan off early. The amount charged as prepayment penalty will depend upon your personal loan provider, but on average, banks charge anywhere between 2-5% of the loan amount, depending on when you’re making the prepayment. Certain banks don’t charge a prepayment penalty at all. If you feel that you may want to pay off your personal loan before your repayment tenure is over, then it is a good idea to look for personal loan companies that don’t charge such a penalty.

3. Repayment Tenures

This refers to the total period during which you will need to pay off your loan in monthly EMIs. You have two advantages when it comes to deciding the repayment terms on your personal loan. One is that you can already calculate your monthly EMI using an EMI Calculator tool that’s available online. The second is that you’ll always be given a choice by your personal loan provider as to how long (or short) you want your loan to be. The shorter your repayment tenure, the bigger your monthly EMI is, and vice-versa.

4. Loan Disbursal Time

This too is a very important factor while evaluating personal loan companies. In an emergency, time is of the essence, and you can’t afford to waste it away by just sitting around waiting for your loan amount to hit your account. The time required to process your loan application and disburse your loan into your account will change with every personal loan company. Today, you can get the loan amount disbursed anywhere between a few minutes to a few hours. Choose a loan provider that won’t make you wait too long for your loan amount.

5. Customer Feedback

Today, it is a good idea to look for customer reviews for your personal loan provider. This will let you know whether the benefits and features advertised by them are true or not, as well as the kind of experience people have had. You don’t want to suffer through the same kind of negative experiences that previous customers might’ve probably been through, right?

Wrap Up

The points that have been listed above are basic factors that you need to consider while evaluating personal loan companies. If you’re looking for a good personal loan provider that offers fast and easy access to short-term funds, KreditBee is an option you can consider. KreditBee offers personal loans up to Rs. 3 Lakhs, with no physical documentation required. All you need to do is download the KreditBee app, complete your profile, and leave the rest to us. If you wish to learn more about our personal loans, write to us at [email protected] or simply call +080 44 292 200.