5 Things to Check Before Picking the Right Loan Bank

Taking a loan in India is simple. The best bank makes it quite hassle-free. The entire process is digital. You can enjoy quick disbursals with just a few clicks. The funds can help you meet diverse financial requirements. You can also go for a top-up loan instead of another fresh personal loan to avoid the application process. But there are important benchmarks that borrowers must check beforehand. This will help pick the best bank for your loan.

You can ensure high-end customer service for yourself at every step. Perks, benefits and privileges are added deals that come along. So have a look at how to get the bank right.

1.     Pocket-Friendly Interest Rates

Make sure the personal loan interest rates are starting at 10.49%. This will impact the EMI and the overall repayment amount. It is vital to work with a bank with affordable rates. Or else it becomes quite difficult to manage the monthly payments. It can impact your overall financial health. You might also end up compromising on your lifestyle. Therefore, do your research and work with a bank that offers the minimum rate.

2.     Processing Fees and Charges

The top bank usually deducts a minor fee of up to 3.5% from the loan amount. This is done at the time of disbursal. Other basic charges might include the following:

  • EMI bounce charge
  • Repayment instrument swap charge
  • Statement of account (ad hoc/ duplicate)
  • Duplicate no objection certificate
  • Cancellation/ rebooking charges
  • Physical repayment schedule
  • Document retrieval charges
  • Foreclosure charges

The bank you are choosing should not ask for more than ₹500 for any category. It should also not have any hidden bills imposed on its customers. Check for transparency at all stages before an instant personal loan application.

3.     No Collateral Requirements

Losing the asset is inevitable in case you fail to repay the loan. It is quite dangerous if you have conveyed your car, home or jewellery as collateral. The risk further increases if the payback tenure is short. So, look for a lender that offers unsecured instant personal loans. It means the fund will be disbursed at the bank’s discretion. It will solely be based on the creditworthiness of the borrower. You will not need any co-signee or guarantor in that case.

4.     Service Requests

You must be able to get help with your loan query or concern. This helps you take an informed choice and get your grievances addressed. The best bank must offer 2 options:

  • New service request
  • Track an existing service request

All you should have to do is log in to the portal and choose the category to get started. Besides a loan, the common options are lost debit card, get your certificate, transaction dispute, check your balance and karma FIRST program.

5.     Multiple Choices

The bank should offer a plethora of loan options. This includes personal, home and two-wheeler loans. Look for loans against property, pre-owned car loans and Sakhi Shakti JLG Loan for Women. Having all the products under one roof saves time and energy. You do not have to tick off different eligibilities and might get perks for being an existing customer

Ticking off these factors beforehand is a good way to determine bank credibility. The entire loan process automatically becomes safe, fast and convenient.

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