Top 10 tips for the best deal on a personal loan

Top 10 Tips For The Best Deal on Personal Loan

There are many instances in life when you feel the need of some urgent cash in your ac-count. So, instead worrying how to arrange that cash, what you can do is to apply for a per-sonal loan. Personal loans are unsecured loans and you don’t have to submit any collaterals. The amount received as personal loan can be used for a wide range of personal require-ments ranging from funding a vacation, planning for your children’s education, making a hol-iday trip, arranging your wedding, paying off your medical bills, renovating your house and many more personal activities. Personal loans can act as your real saviour at times of finan-cial emergency and it is very easy to apply for a personal loan.

Banks offer personal loans at very affordable rates of interest. You can even apply for it on-line and pay it off via easy monthly EMIs. However, it is advisable to opt for a personal loan based on your capacity for repayment.  Given that different personal loan schemes are available in the market, so, how do you choose the best deal on your personal loan? It’s very simple! Once, you decide to you apply for a personal loan, follow the below mentioned tips and get a best deal for you.

Top 10 Tips For The Best Deal on Personal Loan

Make a market surveyDon’t apply for a personal loan without doing any market survey. These days many banks offer personal loans at attractive rates of interest. So, try to find out the cheapest personal loan available in the market and know the terms and conditions associated with it. If you submit your personal loan application without comparing the various personal loans offered by bank,you may miss the best deal.

Don’t borrow beyond your repayment capacityWhen taking a personal, you should not indulge in temptation. Don’t forget that you will have to pay off the interest amount on your principal amount along with the principal amountSo, it always important to borrow how much exactly you need, not anything extra. Don’t make the mistake of borrowing an amount which you cannot repay.

Know the total repayment amountIt is important to know the total amount you will have to pay towards repayment of your personal loan. Knowing the total repayment amount helps you plan for your other future financial goals. You also need to find out if any other hidden charges are involved in the entire process.

Maintain a good credit historyYour credit rating plays a major role in processing your personal loan application form. Whether bank will sanction your personal loan or not, and how much annual percentage rate it will charge on loan – factors like these are dependent on your past credit history. So, it is always important to maintain a good credit history by paying your debts such as monthly EMIs and credit card bills on time.

Know the annual percentage rate (APR):Try to know the annual percentage rate on your personal loan. The APR tells you the exact cost of your personal loan including interest charges, late payment charges and any other related charges. So, it is always important to know the annual percentage rate and compare it to the same rates offered by other banks. You can check your APR by using a loan calculator or reading the small print. Also, you can check it online.

Know the early repayment chargesIt may be possible for you to repay your personal loan before its due date. So, when you apply for a personal loan, also take into consideration the pre-payment charges that your bank may ask for. Normally, many banks charge pre-payment fee, if you pre-close your personal loan. So, it is always advisable to check how much you will have to pay as pre-closure charge. And, if you think that you will be able to pre-close your loan, you better search for a different deal that does not charge early repayment fee.

Faithfulness helpsBeing loyal to your bank always helps. Many banks offer their best rates of interest for their existing and reliable customers. For that, you need to maintain a good and steady relation-ship with your bank by maintaining savings account or credit card bank with it for a longer tenure and paying all your debts on time. Being loyal, you can get preferential rates such flex-ible terms on repayments and lower APR.

Payment Protection of InsurancePayment Protection of Insurance (PPI) is a good option to secure you against loan repayment failure. It is a safety measure you can take. The insurance will cover your loan repayments, in case you fail to pay. A payment protection insurance is ideal for those borrowers who think that they might face future difficulty in repaying the loan. It will take care of your repayment, if something unexpected happens in the future. But, before buying a PPI, shop around and find out the best policy suitable for you.

Get a fixed rate of interest:You can have complete peace of mind by opting for a fixed rate personal loan. Because, here you will know exactly how much interest you will have to pay monthly. Since, the interest is fixed for the whole tenure, you will also know exactly how much you will pay at the end of your tenure. It helps you plan your budget and set your other financial goals. Unlike a floating/vari-able interest rate loan, the rate of interest and the total payable amount remain fixed in a fixed rate personal loan.

Consider the term of your loanIt is always important to consider the term of your loan as per your repayment capacity and other possible financial responsibilities that you might face in future. Analyse your monthly expenses and try to make out how much you will be able to repay every month. If you think your monthly EMIs will be heavy on you, you can opt for longer tenure of repayment and reduce the amount of your monthly EMIs. So, take your time and consider the above mentioned points before applying for a personal loan. Don’t take risk in applying for something which provides you easy cash as and when you require.

Thank you for Checking through our slide. For more information about Personal Loans in UAE then just browse through BankBazaar.ae :https://www.bankbazaar.ae/personal-loan.html