Before you start applying for personal loan, It is necessary to choose the best bank for it.
1: -) First, check out the banks in your area who are giving personal loans, sometimes there may be limits on how much loan the bank can give.If you require money in excess of this, you should look for other banks.
2: -) Gather data from all the banks in your area, then compare among them to choose the best, then apply to your chosen bank.
3: -) Check the EMI per month that you will need to pay, you can multiply this by the total tenure of the loan to know exactly how much you will be paying extra.You can do this for the different banks to find out where you need to pay the least.
4: -) Most banks charge a processsing fee to disburse your personal loan.Compare the fees of different banks to get an idea of the expenditure.There is no need to pay fees to any individual when you take out a personal loan.
5: -) Interest rate is of course an important consideration for choosing the most suitable personal loan.
Interest rates can be two types: -
: - Flat interest rate is one that remains same throughout the tenure of your loan.It generally woeks out to be quite expensive, so it is best to avoid this type of rate.
: - Reducing balance interesr rate is calcuated on the reducing amount of principal.This is less expensive and your best option when you are paying off your personal loan.