The increasing number of financial institutions in India makes it very confusing for the borrowers to pick the best. Be it a home loan or a business loan; you need to make sure that you make the right selection to get the best deal on the loan and world-class services. If you are looking for the best lender, we’ve collected five tips that can surely help.
The rising demand for loans in India has significantly increased the number of financial institutions too. A large number of options often makes it very difficult for a borrower to choose the right lender as per their requirement. Be it home loans, personal loans, or business loans, choose the best lender is one of the most important factors to make sure that you get the best deal on the loan, and also get the best of services.
If all the different lenders are making the selection confusing for you, these five tips are sure to make things easier-
- Eligibility Criteria
The lenders have their own eligibility criteria on the basis of which they approve loan applications for a new home loan, car loan, or business loan. Factors like your salary, employment history, age, existing loans, CIBIL score, etc. are taken into consideration by the lenders. The eligibility requirements of some lenders are more stringent than others. Look for the eligibility criteria of the lender for the type of loan you are looking for to shortlist a few lenders that suit you best.
- Interest rate and other charges
A lot of borrowers select lenders on the basis of the interest they charge. They pick one that is offering the required loan at the cheapest interest rate. While the interest rate is surely an important criterion to select the best lender, you also need to check other additional charges of the lender to make the right decision. The right lender is the one that is offering the loan at a competitive rate and is very upfront about the additional charges.
- Processing Time
A lot of times, you are in urgent need of a loan and the time that a lender takes to process the loan comes into the picture in such instances. This is especially true for a lot of borrowers looking for a Personal Loan or a home loan. While the availability of online loans has significantly reduced the processing time, it is still something that you should consider when selecting the lender.
- Expert Advice
A lender should not just be focused upon selling you the loan. As your financial partner, it should have experts that can help you take right decisions. With so many different types of loans available, the expert should be able to recommend the best product which perfectly suits your requirements and financial condition. This will ensure that you can take the right financial decisions that can significantly benefit you on your financial journey.
- Policy in case of Non-payment or Late Payment
Life is full of ups and downs, and financial complications can occur after you’ve taken a loan. It can be difficult for you in such situations to regularly pay the loan EMIs. As a result, it is very important for the borrowers to check the policy of the lenders in case of non-payment or late payment. Your lender should be considerate enough to understand your situation and provide you with an alternative solution for a few months to help you sort out your financial complication.
Remember these factors when you are looking for the right lender, and you are sure to eliminate all the confusion and difficulties involved in the process.