Six ways to choose the best personal loan
A great way to obtain funds quickly for a wide range of needs is to take a Personal Loan. Whether it’s a wedding, a child’s education, a medical emergency, travel, or any other requirement, the best option is a Personal Loan. It’s an available line of credit that enables you to meet the need of the hour. You can get the funds quickly in a matter of seconds or hours, with minimal documentation. You can repay the loan over some time, either months or years in easy monthly instalments.
To sum up, a Personal Loan can help for any immediate financial requirement, whether for emergencies or otherwise.
There are many options available for a Personal Loan; so how do you choose the best Personal Loan in India?
Let’s look at how what the best Personal Loans have to offer:
- Interest rates:
The first thing you want to consider while taking a Personal Loan is the interest rate. The best Personal Loans from your point of view are the ones that offer the lowest interest rates. Your best bet would be to go to a reputed bank; your friendly neighbourhood moneylender will charge you an arm and a leg. Within banks, there are significant differences in interest rates. So it’s a good idea to shop around for a bit and compare the interest rates offered by different banks. You can do this quite easily online. However, what you must remember is that banks offer different rates to different customers depending on factors like how reliable your income stream is etc. Interest rates are critical since even small percentage differences will add to your loan cost over some time.
- No collateral:
All Personal Loans are unsecured. You don’t have to put up any collateral for your loan. This works for you if you don’t have or want to pledge any assets that you may have to get a Personal Loan. The alternate options could be Secured Loans where you pledge assets, as the interest rates could be lower. Plus, you don’t have to worry about poor credit scores. If that’s not an option, Personal Loans are ideal.
- Minimal documentation:
The best Personal Loans could be those that you can get with a minimum of fuss. For example, when you’re in a hurry to get some cash, the last thing you want to do is submit a lot of documents and fill in a lot of forms.
Well, thanks to the Internet, you don’t have to do that anymore, and you can apply for a loan from the comfort of your home.
The best Personal Loan could be one from your bank. They will have all your personal and financial details and so don’t have to bother about too much verification. And in these days of Internet banking, you could get that money in your account in no time at all.
You can apply for an HDFC Bank Personal Loan in many ways – online on the website, via NetBanking, at an ATM or by visiting an HDFC Bank branch. Select pre-approved HDFC Bank customers can get a Personal Loan in 10 seconds*; others will receive it in less than four hours*. If you are a customer, you can check with the bank or via NetBanking if there’s a Personal Loan offer for you.
How to choose the right Personal Loan? One of the essential things you must consider is the tenure of the loan. The best loan from your perspective is one that matches your time requirement – whether you need a loan for a few months or several years. The amount of EMI (equated monthly instalments) that you pay will depend on the tenure of the loan. A longer tenure will mean lower EMIs, but more interest payouts. Choose a bank that allows you to be flexible about tenures.
HDFC Bank offers a Personal Loan amount of up to Rs. 40 lacs, with tenures from 12 to 60 months, and repayment in easy EMIs, starting at Rs. 2,149 per lac (Check our Personal Loan EMI calculator to plan your loan better).
- Loan amount:
The best Personal Loan is one that’s of the right amount. If you need a loan of Rs. 20 lacs, there’s no point going to a bank whose upper limit is Rs. 10 lacs.
- Processing costs:
The interest rate on your loan and the processing fee determine the total cost of the loan. You should consider both factors before you decide. HDFC Bank has low processing fees that will reduce your loan burden.
With its superfast disbursals and the efficient loan process, HDFC Bank is one of the leading banks in India that offers among the best Personal Loans in India.The bank comes up with Personal Loan offers periodically.
* Terms & conditions apply — Personal Loan disbursal at the sole discretion of HDFC Bank Ltd. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.