A personal loan is one of the best ways to manage financial emergency without having to submit any form of collateral or a huge income guarantee. However, how do you find the best personal loan deal for you? Here’s how.

In today’s world, if you have a stable income and repay your debts on time, finding a personal loan is not tough. However, there are numerous types of personal loans available in the market and some have lower interest rates and benefits, while some have outrageously high interest rates. So, how do you choose the best personal loan for you amongst all the choices? Here’s how:

✔ Check your Eligibility - Before you even begin the process of a personal loan application, it is wise to go ahead and check on your loan eligibility. Most of the times borrowers apply for a loan application without analyzing their eligibility and face a loan rejection on their application. That could have adverse effects on your credit score. Letzbank provides a personal loan eligibility tool that quickly accesses your eligibility once you input some of the basic details related to personal loan requirements. So the first and foremost thing to do is to check your personal loan eligibility. If you are eligible, you need to move to the next step.

✔ Use a Personal Loan EMI calculator – One of the biggest mistakes people make while looking for a personal loan is not estimating how much amount they can actually afford. Don't borrow more than what you need. Personal loans have the highest amount of interests and repayment can be a huge burden on some if they do not evaluate the amount they are able to set aside for personal loan repayment every month. A personal loan EMI calculator is one of the best ways to get an idea on how much you are willing to pay towards your loan, without actually applying for a personal loan application. Letzbank has a great personal loan EMI calculator that allows you to not only determine your monthly EMI but also the annual break up of the amount you will pay towards the principal loan and the standalone interest. Based on the EMI, you can easily determine which interest rate, loan amount and the loan tenure best suits your needs.

✔ Make Comparisons – The best way to find a personal loan that fits your budget and meet your requirements is to compare different loans. However, checking each bank website and then analyzing on different web pages could be a very exhausting experience. At Letzbank, we make loan comparisons simpler by displaying all personal loans at one single page with detailed information on all loans and the ability to compare different loans. Choosing the right loan is made easier this way, so that you are rest assured of the best loan for you and can move forward with your loan application process. Letzbank provides personal loans from Rs. 15 lakhs to Rs. 25 lakhs. The interest rates range from 11.49% per annum to 49% per annum, depending on the bank.

✔ Look for Loan Features – Looking for the lowest interest rate is not the only selection criteria you must have for a good personal loan. Certain personal loan features such as a balance transfer facility, zero penalty on foreclosure charges, etc. can be a lot beneficial in the long run. So look for banks that provide this feature to allow you the flexibility in repayment without any penalties or hassle.

✔ Check Your Credit Score – Knowledge of your credit score can go a long way in negotiating on a personal loan product and its terms. Your credit score is an indication of your repayment capabilities. Any credit score that is above 700 points is considered a good credit score and banks check your credit score before they approve your loan application. So, it is crucial that you are aware of your credit standing so that you can rectify any discrepancies (if found in the report). A good credit score can place you in a positive position to negotiate on a lower interest rate and other offer and benefits with your bank.

✔ Check for pre-approved loan offers – As banks are highly competitive with their loan offerings, they offer pre-approved personal loans to their existing customers from time to time. One of the best ways to get a great personal loan offer is by availing such pre-approved loan offers. Pre-approved loan offers attract existing customers with attractive interest rates, zero penalties on prepayment, additional benefits such as a flexi loan scheme and much more! So, check with your bank to see if you are eligible for any preapproved personal loan offers before you start searching elsewhere.

Check Your Eligibility

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