There are numerous financial institutions which offer personal loans. Following tips can be used for choosing the best personal loan:
Even a small difference in loan interest rate would work out to the considerable difference in the amount repaid. Always choose the loan given at the lowest possible interest rate. There are websites which provide comparison data of interest rates. If the interest rate is a fixed rate, analyze the market trend before taking the loan. If interest rates indicate likely downward movement in future, floating interest rate has to be selected.
There are many lenders in the market who offer personal loans without security. Hence do not select lending institutions which demand security/ Multiple guarantees/ Margin money etc. Only the loan with simple documentation has to be selected.
The more the repayment period, the lower will be the EMIs. Hence repayment will not result in a financial crunch for the borrower. Please select the ones which offer higher repayment period.
Processing charges and the preclosure penalty should not be too high. Also, there should not be any hidden charges. Only such personal loan has to be selected.
The lender must process the loan fastly. Also, the lender should offer easy modes of repayment like an electronic transfer.
These days almost all the financial institutions have websites and provide full details. Websites like http://www.nettivipit.fi/vippi-20/ offer full details of the loan product and FAQs also. Besides most of them offer 24*7 support.
The customer service should be prompt and friendly. Any discrepancy in the loan as result of delay/mistakes from the lender side would affect the credit rating of the borrower only. Hence personal loan must be taken from lending institutions which provide prompt customer service where all the above-mentioned features are present.