With the advent of new NBFCs and FinTech companies in recent years, instant loan apps are abundant. Choosing the right online loan apps is not just a matter of convenience but also bonus services and more manageable repayment options. People now tend to go for the personal loan options in case of the financial crunch as there is no need to specify end-use. Secondly, interest rates may be lower. Hence, personal loans are being used to financially support higher education, debt consolidation, medical bills, and other urgent needs.
Instant loan apps such as Fullerton India Personal Loan App, provide loans with various facilities and can be convenient during a cash crunch. However, the borrower needs to choose the lender wisely to enjoy benefits and avoid future hassles. Below we will discuss key points to check before availing of personal loans.
Tips Before Availing Personal Loans Online:
- Interest Rates: Most obvious thing to check before taking the loan is the interest rate. Firstly, the borrower has to decide whether he wants the loan on fixed interest rates or variable/floating interest rates. Fixed interest rates are usually higher but remain fixed during the loan repayment. Floating interest rates are dependent on market fluctuations. However, according to experts, fixed interest rates are a safer option to go for, as floating interest rates might get a little too high.
- Comparative analysis between the lenders: This is usually something that borrowers are likely to remember before taking the loan, but it’s important to emphasize the importance of comparing different lenders. There is a saying which is even more true in this context, “There is always a better option.” Choose the option which is most convenient and affordable.
- Repayment: Having different EMI options is always a plus when it comes to loans. There are many variables like
- Tenure period: Lenders usually have a fixed tenure period for loan repayment. Choosing a longer or shorter repayment option will decrease or increase the EMI, respectively.
- Prepayment/ Part-payment: Different lenders have different policies regarding prepayment/ part-payment. Some banks allow for prepayment, while some don’t. If the borrower is certain he can pay back the loan earlier, they should choose the option where prepayment is available. Prepayment can save the borrower a lot of money which would have gone into interests.
- Mode of repayment: Most lenders give a wide variety of repayment options; however, if you cannot find the option suitable for you, it’s time to look for another lender.
- Use EMI calculator: The borrower needs to use an EMI calculator to calculate the EMI amount and figure out if it is affordable. This will ensure you are not overburdening your monthly budget by a significant amount. This step is also crucial so that the borrower doesn’t go broke when repaying the EMI.
- Terms and conditions: It is indispensable that an instant loan app is read carefully before hitting the ‘I Agree’ button while taking the loan. It has become a habit for workpuls people to hit ‘I Agree’ before even reading. Such negligence can be very precarious for the individuals applying for the online loan. One should go through the terms and conditions thoroughly and cross-check the authenticity and reliability of the lender.
Authenticating the reliability of the lender is also equally important when looking for a personal loan. Fullerton India Personal loan app is one such lender that values integrity. They provide a wide variety of loan options with a plethora of repayment options and different interest rates. The process of applying for a personal loan takes less than 5 minutes after downloading their user-friendly online loan app that you can get directly from the Playstore.