Money talk: Looking for Personal Loans?

One of the most common ways to finance a short-term financial need is by taking a personal loan. It is an excellent way to fund a variety of situations whether be it a medical emergency, traveling costs, wedding expenses, or purchase of a vehicle. While you may be able to avail a personal loan despite a bad credit score or without a high annual income, with a high score and sufficient income, your personal loan will turn out to be more affordable. 

You can make financing your needs easy with a personal loan, but you can also make repayment of your personal loan effortless by availing the best offers. So look at what you need to keep in mind to discover the creme de la creme of personal loan offerings.

Check your credit score
Lenders look at your credit score to measure your creditworthiness as a personal loan is an unsecured loan. Having a credit score of 750 and above is ideal and can help you avail some of the best personal loan offers, with lower interest rates and higher loan amounts. 

But you can avail a personal loan even if you have a bad or lower credit score. However, your options may be limited. To tackle the obstacle of a lower credit score, and a co-applicant with a better credit score.

Pre-Approved offers 
A pre-approved personal loan is a loan offering at a competitive interest rate that requires lesser documentation. These loan offers are usually valid for a limited period and are processed faster than regular loans. 
While your final approval of this offer depends on your lender's policies, your pre-approved offer is based on your credit history and your existing relationship with the lender. You can also be offered a pre-approved personal loan if you have no credit history. In such a case, the loan offer would be based on your income and savings.

Scout around for 
Bestintrest rates
With lenders offering various interest rates and market rates fluctuating, it would be wise to view various offers before making your selection. While the difference may seem marginal, these rates can affect your EMIs quite substantially in the long run. Take the time to view and evaluate various lender offerings even amidst a crisis or a need for urgent funding. 
With online facilities like EMI calculator, you can calculate the ideal EMIs based on loan amount and tenor options. This way, you needn’t worry about making the right financial decisions during emergencies.

Know the charges
While you look for the best interest rate in the market, you also need to pay keen attention to other charges that are included in your personal loan. These include statement charges, cheque bounce charges, loan processing charges, stamping charges, documentation charges, and more. This way, you attain clarity on the overall expense of your loan before you can sign the contract. Though you may not miss out on EMIs or the chances of a cheque bounce are less likely, it is better to be financially prepared.  Being aware of the charges can also help you choose the ideal lender that cuts down on unnecessary costs making your personal loan even more affordable.

Fine print
Despite your urge to ignore the fine print, read it! The fine print contains various clauses that you are agreeing to when you sign your personal loan paperwork. 
This means that you are legally stating that you understand the terms and conditions set down by your lender and you agree to abide by the same. When you read fine print you will become aware repayment clauses and additional repayment charges, if any. With the above checklist in hand, you are sure to make better your financial choices in choosing the ideal personal loan for your needs.