How To Find the Right Loan Option for You

Countless loan options are available online today, so choosing the right one can be confusing. Every loan app offers unique features and benefits. Understanding your needs and repaying ability can make the selection process easier. Take your time, compare features, and choose the one that fits your budget and goals.

Factors That Contribute to the Right Loan for You

Whether you're a salaried individual or a self-employed borrower, there are a few key factors that can help you find the perfect loan. These factors will also define the best loan providers and include:

Comfortable Interest Rate

Interest is the extra money you pay to the lender when you take a loan. Different providers charge different amounts. To maximise your savings, choose the one with the lowest rate.

If you already have an account with a bank, they may charge you less. Some loan apps also give discounts to employees of MNCs or during festive promotions. A pre-approved personal loan offer or a high credit score can also help you get the most competitive interest rate.

Consider all these options before applying for a personal loan to avoid paying more interest.

Here are the interest rates of some of the top personal loan apps for your reference:

Disclaimer: These rates are subject to change over time and depend on the policies of the loan provider. Visit the official website or app to check the current rate before applying.

Simple Eligibility Criteria

To get a personal loan, you need to meet the lender's requirements. The easier the eligibility terms, the better your chances of qualifying for the loan. Many lenders have a certain credit score or CIBIL score that you need to have as one of the eligibility terms. Usually, you need to have a CIBIL score of 700+. Lenders also check your income, and you may need to meet the minimum monthly requirement. There are also age-related and location-based terms.

So, check the eligibility criteria of different lenders before applying on personal loan apps. This will help you find one that matches your financial situation, ability and place of residence. Banks, NBFCs and other financial companies with easy eligibility requirements make loans more accessible.

Time Taken

In an emergency, you should get loans from lenders that facilitate a quick approval and disbursal process. Here are a few personal loan apps that are recognised for their instant procedure:

• Moneyview
• IndiaLends
• Navi
• MoneyTap

Documentation Required

Loans with fewer documents are a great choice since they get approved quicker than the others. When you are in a hurry, arranging documents is the last thing you should worry about.

Transparency of Terms and Conditions

When taking a personal loan, check not only the interest rate but also any extra fees like processing charges. Some lenders have more hidden costs that can make your loan expensive, such as verification charges, foreclosure charges and more.

Always choose a lender with clear and transparent terms. This way, you can avoid unwanted surprises and manage your loan better. Knowing all costs upfront lets you borrow confidently while staying within your budget.

Tenure Options

This is the time period within which you need to repay the loan amount. It is very important when you take a loan as it will affect your monthly repayment installment. Here are a few things you need to consider:

• Look for a tenure that is comfortable for you
• Choose a longer tenure to make the EMIs more manageable
• Choose a shorter tenure for a more competitive interest rate

Why to Avoid Multiple Loan Applications

Do not apply for loans from multiple providers in a short period. Doing so will affect your credit score. A low credit score gives the impression of an irresponsible user of credit, which can lead to rejection of your loan applications. So, it is best to first know your score and apply for a loan that you are eligible for.

That's exactly why you can rely on the OneScore App. Since most lenders check your credit history and score before approving your loan, keeping an eye on your score yourself and improving it is essential. With the OneScore app, you can do it for free all through your life! This app lets you check your CIBIL and Experian scores at any time and from anywhere.

What's more, you can get personalized insights on how you can improve your credit standing and set a score goal as well! It also helps you manage your existing loans and credit cards with tailored suggestions. By following these tips, you can improve your credit score in a few months and increase your chances of qualifying for your preferred loan. Download it today and manage your credit health like a pro!