Whenever a person wants to buy something new, or do anything else , It requires money. The probability is they will look up to a credit card to do it. Sure, it is a popular idea considering the choice available in the market. But in the long run, if you look at its interest rate and calculate the total cost, one would say they are way more costly compared to a personal loan.
The annual percentage rate goes up to 40.0%, 42%, and 40.2%. So, it makes sense to choose a better platform to get financial support. A personal loan is a perfect replacement for a credit card with a cheap interest rate. There are lenders such as Kotak Mahindra Bank personal loan, ICICI bank personal loan, and HDFC personal loan offering the best deals. To get those deals, it needs two things. The first is the eligibility criteria, and the second way is to get the best interest rate at lower charges. The eligibility criteria depend upon these factors The first and foremost thing is to qualify for a personal loan. To do it, you have to check the lender's eligibility criteria. Following Factors are affecting the requirements.
Researching the lenders The path to finding the lower interest rate always starts with researching the lenders. There is a traditional lender who takes 7 to 10 days to disburse the loan. Then some online digital lenders could get you the loan in less 48 hours. However, there is no doubt, both kinds of lenders offer a great deal. IDFC Bank offers the lowest interest rate at 9.20% while Yes bank is offering the highest at 13.99% P.A. The digital lender's interest rate goes up to 40% P.A. so, choose wisely. Is there pre-approval loan offers Look for a lender who could get you pre-approved offers. It reduces the processing time while also offering a competitive interest rate. it will take less time . Since there is no need for collateral, a lender needs to reduce the risk. Are you working in a reputed MNC? Do you know what a lender does not like in a borrower? The borrower's instability in a job. It does not matter what another factor you may consider or not. This one fact right here will spoil everything. In simple terms, if you have a stable job and income, the lender is highly likely to offer you a personal loan. Apart from this thing, if your employer has a good reputation, then it is an additional point. Assuring the lender will help you in negotiating for an overall deal. Still better than a high-end interest rate credit card. This is the info, which will help you in getting the best deal. The eligibility criteria factors and getting the interest rate is the perfect combination. The conclusion I hope I have guided you well and now you can make better decisions about why taking a personal loan is better than a credit card. Lastly, do also check out the documents you will need to submit. Read More: The Guide To Getting Cheap Personal Loan
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Apoorv ChaudharyStrong marketing professional with a focus on Finance & Marketing. Archives
March 2021
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