You may find yourself in a situation where you need extra cash to tide you over. You may need to start a business, make a large purchase, or you may need to consolidate some debts.
Whatever your reasons for needing a personal loan scheme, you should look for one that suits your needs and gives you the best deal. However, with so many schemes on offer in the market, knowing which is perfect for you can take time. Let’s have a look at five crucial aspects to look for in a personal loan scheme. Keep reading to learn more!
Many personal loan schemes are available in the market, each offering different features. One important feature to look for is the interest rate.
Interest rates can impact the overall cost of the loan. They can make a big difference in whether or not the loan is affordable. For this reason, it is always worth looking for a personal loan with a low-interest rate.
A low-interest rate personal loan scheme is always ideal, as it means:
- You will have to pay less interest over the life of the loan.
- Can save you significant money in the long run.
- Make repaying the loan more manageable.
There are many personal loan schemes on the market. So be sure to shop around and compare interest rates before making a decision.
Flexible Repayment Terms
A key feature of personal loans is the ability to tailor the loan to the borrower’s specific needs and budget. One way to do this is to offer flexible repayment terms.
A personal loan scheme with flexible repayment terms is an ideal feature to look for if you have difficulty making fixed monthly payments. With a flexible repayment schedule, you can:
- Choose how long you want to repay the loan.
- Postpone your repayments until you are in a better financial situation.
- Make smaller payments in the form of EMIs, which can help manage your cash flow.
- Make extra repayments on your loan without incurring any penalties. This can help you pay off your loan sooner and save on interest costs.
- Stay current on your loan schedule to avoid default.
- Repay the full amount at the end of the term without any financial issues.
A personal loan scheme with flexible repayment terms may offer a lower interest rate than a traditional loan, making it more affordable for borrowers.
No Hidden Fees or Charges
A scheme with no hidden fees is one of the most crucial features to look for when applying for a personal loan. This is because hidden fees or charges can frequently add a significant amount to the overall cost of the loan. Thereby making repayment extremely difficult.
A no-fee, no-charge personal loan scheme allows you to learn the true cost of your loan better. This can help you make better loan decisions and avoid surprises down the road. Furthermore, it can make the loan process more transparent and help build trust between you and the lender.
Here are five hidden charges to watch for with personal loans:
- Origination Fees: This is a fee charged by the lender in return for originating the loan. Depending on the lender, personal loan origination fees typically range from 1% to 10%.
- Loan Processing Fee: The lender charges a fee for processing your loan. It is typically a percentage of the loan amount that varies depending on the loan provider and can range from 0% to 8%.
- Prepayment Penalty: Some lenders charge a penalty if you pay off your loan early. This is typically a percentage of the outstanding loan balance and can range up to 5%.
- Late Payment Fee: This is a fee for defaulting the payment of an EMI(equated monthly instalment) of your loan. The penalty is typically between 1% and 2% of the EMI.
- Duplicate Documentation Fee: This is a fee charged for reissuing loan-related documents. These can include statements, credit reports, NOCs, etc. This fee generally ranges between Rs. 50 and Rs.500.
Speedy Application Process & Approval Times
A personal loan can be a lifesaver during tough times. But the application process and approval times can be frustrating, when if you need the money urgently. That’s why a speedy application process and approval times are ideal when looking for a personal loan scheme. This is because it shortens the time required to complete the process and receive funds. This way, you will receive the funds you need quickly and without delays.
However, getting your loan application approved quickly, on the other hand, is only sometimes a piece of cake. Here are a few helpful hints to remember for getting fast loan approvals:
- First and foremost, maintain a good credit score.
- Check the lender’s eligibility requirements in advance to ensure that you meet all of the criteria.
- Make sure to gather all of the necessary papers and details on hand before you start the process.
- Complete the application as accurately and truthfully as possible.
- And lastly, be prepared to explain why you are requesting the loan and how you plan to use the funds.
Excellent Customer Service
Customer service is one of the most vital factors to consider when looking for a personal loan scheme. This is because it can make a big difference in your loan experience.
With excellent customer service, you can expect to be treated well throughout the entire loan process. From the initial application to the final repayment, you’ll receive quality service that meets your needs. This means having access to an informed customer service team. This team can answer your questions and help you navigate the loan process.
So, make sure to ask about customer service when considering a personal loan scheme. In addition, try to find a lender with a good reputation for assistance to make your loan experience as smooth and stress-free as possible.
Nowadays numerous personal loan schemes are available in the market today; however, not all are created equally. So, when looking for a personal loan scheme, remember these five key features to get the best value.
Furthermore, Piramal Finance’s personal loan scheme offers all of these features and more, making it an ideal choice for you. To learn more, visit the Piramal Finance website today.