How to choose a suitable personal loan for your financial needs?
You could have various financial goals that need to be fulfilled but may require an additional financial boost. Perhaps you want to consolidate debt, fund home renovation projects, cover medical expenses, finance a trip, or cover wedding costs. A personal loan can give you the much-needed funds to achieve these goals. However, selecting the right personal loan is as crucial as these financial goals you aim to achieve. This is because numerous lenders offer different terms, interest rates, loan amounts, and fees.
Let’s explore what factors you should note while making this important decision.
Affordable interest rate
Finding a lender with competitive personal loan interest rates should be your priority. Lower interest rates mean you have to pay less in the long term, which means a stress–free borrowing experience. You can opt for IDFC FIRST Bank’s FIRSTmoney loans to enjoy the most affordable interest rate and keep your financial health intact.
Flexible loan amount
The best personal loan should match the amount you need. With FIRSTmoney, you can get an offer amount of up to ₹10 lakh, especially with a strong credit score. You can then withdraw and use the amount needed and pay interest only on the sum you withdraw and not the entire offer amount. You can withdraw the entire amount at once or in smaller portions and manage your financial needs better.
Flexible repayment options
Choose a personal loan that allows you to decide between a shorter or longer repayment tenure. IDFC FIRST Bank’s FIRSTmoney offers this flexibility. You can repay the borrowed funds in a timeline that ranges from 2 to 60 months. Whether you need to clear the debt quickly or prefer to take your time, the choice is 100% yours.
Zero foreclosure charges
If you have surplus funds, it’s natural to think about paying off a loan early to reduce the overall interest burden. However, many personal loans come with hefty foreclosure penalties that could make it expensive to repay the loan before the tenure ends. In this case, applying for FIRSTmoney, a smart personal loan with no foreclosure penalties, is a practical decision. You are free to repay the loan whenever you can without worrying about being penalised for closing the account early.
Transparency and fees
Personal loans can come with hidden fees and charges that make the loan much more expensive than it first appears. Thus, opt for a lender that maintains transparency about processing fees, prepayment penalties, late payment charges, and any other related costs. This helps you know what you will pay exactly throughout the loan tenure.
Ending notes
Choosing the right personal loan is important for your financial health. Hence, prioritise loans that offer a manageable interest rate, easy repayment terms, and clear terms with no hidden fees. Make sure your loan has no foreclosure charges so you can pay off your debt early if you want without additional costs. By focusing on these factors, you can find a personal loan that meets your monetary needs and also supports your long-term financial stability.
Disclaimer: This article is published in association with IDFC FIRST and not created by TNM Editorial.