Finding the Right Lender: How to Choose a Personal Loan in Varanasi
Since the very advent of banking, personal loans have been in great demand. These are unsecured loans that are easier to procure because of less paperwork and lack of a security or guarantor. Be it for debt consolidation, wedding or other social functions in the family, or medical emergencies for self or family, people tend to opt for personal loans. Bhumi Finance will tell you how to choose the right lender for a personal loan in Varanasi:
- Hit a Comparison for Loan Interest Rates
Perhaps a bank approaches you offering "just 14% per annum" for your loan. Or you approach the bank you have your savings account in and find that the interest rate is "just 16%". However attractive the bank makes the offer seem to you, an important step before deciding which bank to take a loan from is to research personal loan terms of different banks and compare the interest rates. There are many ways to do this - you can either do your research by going to the websites of different banks and finding out their interest rates or go to financial websites such as Bhumi Finance, one of the best personal loan providers in Varanasi, that will give you all the required information based on the requirements you input.
- Compare Fees
Even for the best business loan in Varanasi, interest rates are not the only things you need to compare when choosing a personal loan. You also need to look at the various fees charged by the bank. The fees usually associated with a personal loan are processing fees, late payment charges, cheque bounce charges, loan cancellation charges, and service tax for each service provided by the bank. Of this, the most important is the processing fee, which usually is between 1% and 3%. Reach out to the best personal and home loan service providers in Varanasi now.
- Look for Repayment Flexibility
Most personal loan services in Varanasi come with full and partial pre-payment charges. This means that if you want to pay off the outstanding amount of your loan before the tenure ends, you will have to pay a small fee. Some banks charge no foreclosure fees, but most banks charge between 2% and 5% of the balance amount.
- Find an Affordable Personal Loan in Varanasi Option
Before you take a loan, you need to be sure that you will be able to make regular repayments to close the loan on time and without any penalties. For this, you need to know an estimate of the equated monthly installment (EMI) that you will have to pay on the amount you borrow. Knowing your approximate EMI is easy when you use an EMI calculator. By entering the respective values of the bank which you have decided to borrow from, you will get an idea of the amount that will get deducted from your account every month as a personal loan EMI. The higher the amount, the more the EMI you will have to pay. Ensure that your total EMI deductions from the best personal loan providers in Varanasi in a month are not more than 50% of your income. For example, if your monthly income is Rs. 50,000, all your EMIs put together should not exceed Rs. 25,000.
To know more about our personal loan services in Varanasi, reach out to us now at https://bhumifinance.com/. Best of all, we also extended a new car loan in Varanasi.