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How to Find the Right Personal Loan for You

  • Highlights

  • Shop around for the best loan option for your needs

  • Decide on an optimum repayment tenor for your loan

  • Look for affordable EMIs so that the loan stays affordable

  • Understand all terms given in the loan document thoroughly

Are you a working professional in need for some urgent cash? Consider availing a personal loan to get easy access to funds which would have otherwise taken you a while to save up.

The most common reasons to avail a personal loan are medical emergencies, social occasions, paying off credit card bills, repaying previous debts, funding vacation plans or purchasing dear goods including consumer durables. Whatever be your need for availing a personal loan, you need to meet the eligibility criteria of the lending institute, to be qualified for an offer.

The following are the criteria to be fulfilled by the borrower –

  • 1. You must be between 23 and 55 years of age

  • 2. You must be a salaried individual working with an MNC, public or private company

  • 3. You must be a resident of India

  • 4. Your minimum net salary requirement depends on your city of residence.

However, the minimum net salary limit varies from lender to lender. Now that you have checked your eligibility and have decided to avail a personal loan, the next question is how should you choose the apt personal loan to cover your needs?

Read along to discover the golden rule of choosing the right personal loan for you -

Compare and choose wisely: Personal loan is the most common product offered by banks and financial institutions. Invest some time to research different options available. Do not lookout only for affordable premium; compare processing fees, EMI bounce charges, late payment fees, foreclosure charges, and service taxes.

Additional Read: Everything You Should Know About the Fees and Charges Applicable on Your Personal Loan

Check repayment flexibility: Most lender claim full and partial payment charges. So, in case you wish to pay off your loan before the tenor ends, you need to pay a small fee for the same. However, some lenders are now offering better repayment flexibility, by providing free part and full repayment for personal loans.

Flexi Loan Explained

Things to know before applying for a Personal Loan

Keep the tenor short: Borrowers tend to opt for a longer tenor to avail affordable EMIs as well as claim tax benefit on a personal loan. But bear in mind that the longer the tenor, the more interest you have to pay. So, it is advisable to choose a shorter tenor while ensuring the EMI stays well within your budget.


Do not overburden: Before securing the loan, get an idea regarding the EMI amount you will be paying as well as the loan tenor involved. Do not borrow more than what you can pay. Use a personal loan EMI calculator provided on your preferred lender’s website to estimate the instalments that will go out every month.

Read the loan document carefully: Loan documents are filled with jargons and a glossary of terms, which are difficult to comprehend. Take help from a financial adviser in case you need any assistance in understanding the terminology. Sign only when you are clear about each and everything mentioned in the document.

By keeping these few points in mind, you will be able to avail the personal loan that best suits your needs.

DISCLAIMER: The personal loan features mentioned in this article are subject to change, based on policy revisions. For the updated product details, please visit the Bajaj Finserv Personal Loan page here.

 

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