Getting a loan is always a daunting task for people. It involves large amount of paperwork and documentations and is definitely a huge burden on the borrower to make in monthly repayments on time. Be it car loan, home or gold loan they all include long procedures of completion before you get the credit. But such is not the case for personal loans. Anyone can apply for personal loans whenever they want which is usually disbursed within a few days. The best part about personal loans is that one does not need to keep any collaterals as security in possession of the money lender and one doesn’t even need to bring in a guarantor. But it does have a down side. The interest rates for personal loan is much higher than any other loans available. But one can take a few measures to ensure that one can gets personal loans at reasonable rate. Let’s take a look at a few of them –
- Go through the interest rates and compare prior to procurement of loan – It is always a better option to compare all your possible options before finalizing a deal. So is the case for a loan. It is of utmost importance that one carefully weighs their option when it comes to interest rates and opts for the one that offers the loan at lowest interest rate. This ensures that you pay lower EMIs or have a shorter loan tenure.
- Check out the foreclosure charges- Foreclosure or prepayment of the loan involves the settling of loan prior to the tenure. Now it is of utmost importance that one does not procure a loan from a lender which does not partial prepayment or full foreclosure. In most cases banks or finance companies impose additional charges for foreclosure of loan and it is best if you have that knowledge prior to finalizing your deal. It is obviously best to opt for a lender where the charges are lower. Not only that in some banks the foreclosure is only allowed after a certain tenure. So it is best to compare your options beforehand.
- Keeping a good credit score- A good credit score always gives you an upper hand when you decide to get a personal loan. Not only does your good past record get you the loan sanctioned but it may even get you the loan at lower interest rates as the bank does not question you repayment capabilities.