How to select a Personal Loan that meets your needs

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Pune (Maharashtra) [India] June 25: A personal loan is one of the most versatile forms of credit as it allows you to finance any goal without any restriction.

Since it is collateral-free, you don’t need to risk any assets, and since you can choose your tenor as per pocket, you can repay it hassle-free. That being and being smart about your goals will help you choose the most cost-effective and feature-rich option.

Apart from taking stock of your finances and looking for low interest rates, there are other important factors that you need to consider when selecting the right personal loan. Read on to know more.

Define your purpose

Starting from debt consolidation to a family wedding or a business expansion to your child’s education, your needs may differ based on your lifestyle. Lenders often customise personal loans to help you tackle these needs more thoroughly. Choosing these can help you get attractive terms and features. For instance, Bajaj Finserv offers a Personal Loan for Weddings, a Personal Loan for Travel, and a Personal Loan for Medical Emergency.

Calculate the amount

Once you define your purpose, estimate the amount needed. This will help you from over-borrowing or under borrowing, both of which come with complications. One way that you can keep your EMIs under control and still have an access to ample funds is by choosing the Flexi Personal Loan offered by Bajaj Finserv. This loan variant helps you withdraw several times from your sanction, without having to apply for multiple loans while paying interest only on what you use rather than the total amount. Further, you can save up to 45 per cent on EMIs by paying interest-only EMIs.

See if you qualify and choose pocket-friendly EMIs

Before going any further, use the personal loan eligibility calculator online to compare terms of various lenders and see if you qualify. This will help you avoid a rejection of your application and a dip in your credit score. Next, estimate EMIs that fit into your budget. With the EMI calculator, you can see how different combinations of these terms will affect your monthly repayment, so you can choose the right tenure and amount. This will ensure the personal loan you select is truly right for you.

Check the terms of repayment

Repaying your personal loan on time helps you avoid penalties and improve your credit score. To repay your loan conveniently, look for lenders who offer flexible terms like a long tenor, nil or minimal charges on part-prepayment and foreclosure, lower associated costs and fees like processing fees and secure fees. All this brings your overall cost down so choose a lender who is transparent about them all. Find out the application process and approval time Finally, check what the lender’s application process is, to ensure it doesn’t take too much time or involve a lot of paperwork or stress. This will help you make your borrowing experience better. For instance, choose a lender who offers an online application with easy eligibility criteria and minimal documents. Next, see if the approval timeline meets your requirements, especially if you have an urgent need. For instance, lenders like Bajaj Finserv offer a Personal Loan in less than 24 hours. Now that you know what you are looking for in a personal loan, compare lenders whose offerings match your needs . Get an ample loan of up to Rs 25 lakh from Bajaj Finserv that you can repay conveniently in up to 60 months.

To get started, simply check your pre-approved personal loan offer and enjoy instant approval.