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Looking for a Personal Loan, Consider these Points before Applying
By Anupama Deshpande | October 22, 2017

Banks or other lenders like NBFCs offer various types of loans for different purposes such as home loan for construction/ purchase of house, education loan for higher education of children, vehicle loan for buying four wheeler or two wheeler, business loan for need of money for business purposes, etc. One of such loans which is the most popular one is none other than a "Personal Loan". You might have noticed that there is at least one email or sms or tele-call received every day regarding providing instant personal loan. These loans can be availed for a variety of reasons like purchase of jewellery, going for a vacation, for marriage of a relative, for some medical emergency, etc.



As the personal loans are available very easily, without any security and in a hassle free manner, they have become very popular & we usually apply for it whenever we have any kind of emergency. Further, some banks even offer pre-approved personal loan on an attractive interest rate. Personal loans are easily get disbursed even within 48 to 72 hours in most of the cases.

It's good to avail personal loan for some reasonable cause but at the same time there is a need to consider some basic points like interest rate, other costs, , which we generally miss out. Hence one should remember that if he/ she is really looking for a Personal Loan, consider these points before applying.

Points to be Considered before Applying for a Personal Loan:

PointCourse of Action
Real needYou must think whether the loan is really needed and how urgent is it? Can it be postponed?
EMI affordabilityIf you go for personal loan, will you be able to repay its EMI well in time?
Compare Interest rate by various lendersBefore applying, you must compare the interest rate offered by different loan providers and select the lender providing the personal loan at the lowest interest rate
Additional feesPay attention towards other fees related to personal loan like processing fee, prepayment fee, late payment charges, etc. they are the additional fees and charges apart from interest charged by the lender
CIBIL scoreIt's always good to check your CIBIL Score in advance so that you can get the loan comfortably, if your credit score is good enough. Now-a-days, you can check your credit score for free on many websites
Type of interest rateLenders offer two different types of charging interest rate i.e. fixed rate and reducing rate. Even if the fixed rate of interest is lower, the real outgo may be higher than that of reducing rate
Consider other types of loansLook for other options of loans e.g. if you want to take a loan for home improvement, check whether you get home loan for it instead of personal loan as the rate of interest on home loan is considerably lower than that of personal loan

If you want to compare interest rate of different banks before applying for a personal loan then click here

I hope that now you would consider above mentioned points in advance of applying for a personal loan so that you would get benefitted in all the circumstances.

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About Anupama Deshpande
Anupama is a Co-Founder of CodeForBanks.com. She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.
Her vast interest & expertise in the field of finance have encouraged her to write the articles so that others can also get benefitted out of them. She never loses any opportunity to learn and be creative. She is a valuable asset for CodeForBanks.com & important resource to all those around her.

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