Applying for a Personal Loan? – Know The Best Tricks
Credit cards are not the first thing that comes to mind when you think about borrowing money from banks. However, personal loans also let you borrow money from banks.
Both lend you money at some interest rate. But still, personal loans are considered the best option out of these two. This is so because the difference in the interest rates of the personal loan and credit cards are quite high. Personal loans have quite rational and affordable rates of interest.
Some things to look out for before applying for a personal loan.
- Insurance – Some banks sell insurance along with personal loans. You should know everything before buying a loan from the bank. Insurances are always there for your convenience. You should at least know about them, and if you feel that they are good for you, they buy them also.
- Estimate Total Interest of Your Loan – Don’t hesitate to ask freely about the interest policies of the bank. Make everything clear before getting a personal loan. For example, ask about the interest rates, whether they are fixed or fluctuate within the tenure.
It would be best to be clear with this in advance because you have to pay this eventually. If possible, calculate the interest rate for the whole tenure in advance. It will give you an idea that you much you will have to pay by the end. Nowadays, almost all banks provide online personal loan EMI calculators that help you calculate all your EMI’s and interest rates.
- Prepayment Fees – Sometimes, w need a personal loan only for a short interval of time. So if you return your personal loan before the prescribed time, it is called pre-closure or pre-payment. Some banks apply charges for the prepayment of the loan. Some don’t. So you should always go for a bank that does not charge any pre-payment fee.
- Compare Interest Rates – Before applying to any bank, you should research the rates of interest in different banks. After analyzing everywhere, you should go for the lowest one. There is no need to go here and there. You can do so on the internet within a few minutes.
If you apply for a personal loan by using these tricks, you will be of benefit. You can get further information on our site and Apply Online at Dialabank.
Read Other Related Articles:
|Why Personal Loan?||Types of Personal Loans|
|When Should You Get a Personal Loan?|
|What is a Spot Loan|
Special Note: An individual must examine the whole EMI amount payable to the lender with the Personal loan EMI calculator.