A personal loan’s popularity surely is a measure of how effective it is for the borrower in the long run. IDFC FIRST Bank offers personal loans of up to ₹1 crore at competitive interest rates. However, there is a 5-step procedure that you must follow even before applying for the best personal loans that offer a lot of benefits. This article summarises this approach by enlisting these five steps for you.
Compare interest rates online
As the first step, you must compare the interest rates of various banks online. This step is to make it easier for you to opt for the lowest interest rate personal loan. Before applying for an urgent loan that you require within a given time period, you must carry out this research to avoid any stress during repayment. Opting for an affordable interest rate is crucial to paying off personal loan EMIs without difficulty.
Use a personal loan EMI calculator
Certain banks provide very well-designed personal loan EMI (Equated Monthly Instalment) calculators on their websites. IDFC FIRST Bank’s calculator also helps you compare the personal loan interest rate with the rates that are offered by other banks. This can help you take a better decision simply by comparing the value of your future EMIs estimated by various banks.
Check your eligibility for a personal loan beforehand
If you have found a bank with the lowest interest rate and have also made use of a personal loan EMI calculator to verify the affordability of the loan, your next step should be to check your eligibility for the personal loan. Various banks require you to meet various eligibility criteria to qualify for their personal loans. These criteria could fall into the following categories – your monthly income, your age, your nationality, your credit history, as well as your credit score.
See to it that the loan amount is sufficient
If you are eligible for a loan, the next thing you must check is the loan amount offered to you by the bank. It is advisable to opt for personal loans that offer large loan amounts to customers – IDFC FIRST Bank being a prime example that offers a generous loan of ₹1 crore to any applicant who meets their eligibility criteria for personal loans.
Plan for your loan repayment
Finally, you must focus on the repayment plan of your personal loan. Yes, in advance! You must be conscious of the loan’s tenure, note down the value of your future EMIs by using an online EMI calculator, and chalk out a plan for your personal loan’s repayment. This step is the most important since it helps you avoid any penalties by paying your EMIs on time and helps you plan expenses much more effectively.
So, before opting for a personal loan with a low interest rate, make sure to follow the above-mentioned 5-step procedure. This will help you in choosing a suitable loan plan which can be repaid without any financial hassles.
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