Not Able To Decide On a Personal Loan

1. Not Able To Decide On a Personal Loan? Want to make your daughter feel like a Queen at her Wedding? Take your partner to a second honeymoon that you have always dreamed about? Or maybe a new car to make more memories in? Ensure speedy recovery and comfort of a loved one? Whatever your monetary need may be, we, at Finance Buddha, can help you make your dreams come true! Let us first understand what a personal loan is, and how we can make your life comfortable. Personal loansare taken to serve some immediate personal purpose. Most commonly, the loan is acquired for a wedding, to organize a holiday or to buy consumer durable goods. A typical loan repayment period is about 5 years.

2. General Purpose of Personal Loan How Does This Help You It spreads your monetary obligations to a longer period of time, guaranteeing your peace of mind along with increasing the affordability in the current financial conditions. It normally has no collateral, which means, you don’t need to mortgage your jewelry / home to acquire this loan. It also gives you flexibility to spend this money for any worthwhile purpose, that is, it does not restrict you to use the money for a specific purpose unlike a housing loan or a car loan. And the best part, it is available to you in 4-5 days, allowing you to meet any urgent cash requirement! The general procedure for finding the best deal is: Decide how much loan you want, and when you want it: This will help you as it helps you understand the purpose for which you are applying the loan in its totality. This can also help you shortlist between banks if their processing time is longer than your urgency, or the loan amount is higher than the bank’s limit. If there is a pressing urgency, a general rule of thumb can be: A bank that sends

3. representative to your house can normally get you the loan faster than a bank which asks you to visit the branch. Find the least cost: Approach all banks in your area, gather information about their loan offerings, Do NOT apply for loan at this stage. Find out the EMI that each bank is offering and multiply it by the tenure. Add to it any processing fees the bank is charging. This gives you the total amount that you will be paying to each source. Compare the prepayment charges for the different banks. If you are planning to pay off your loan in lump sums, opt for those that allow 0% prepayment charges. Now by now you will know which institution is charging you the lowest cost, but be cautious of a very important consideration: the Interest rate. When you are applying for a loan there can be two types of interest rates: a flat interest rate and a “reducing balance” interest rate. The flat interest rate remains fixed throughout the tenure of repayment, this can become more expensive. Reducing balance interest rate is calculated on the reducing amount of principal. This is less expensive and your best option when you are paying off your personal loans. It is necessary to collate all these factors to arrive at the most suitable personal loan for you. To calculate the EMI you can use this calculator It is also important to understand that different people get different interest rates. This depends on your CIBIL score. This is a credit score, which is a representation of your financial history, it is generated by the Credit Information Bureau of India. It can range from 300 to 999, and a minimum score of 750 is required to get a personal loan. Since personal loans are unsecured loans (not backed by your assets as a mortgage) they rely heavily on your credit rating. The higher is the rating, the faster is the approval.