Tips on a personal loan and choosing the best lender

Choosing a personal loan is a tough thing to do. Considering the number of lenders that have appeared in the market in recent times, an instant loan could help you out in financial distress. And there is no harm in it since it does not require collateral to apply for the loan.

However, before you choose a lender, there are a lot of things to consider to make the process easy. This post will focus on those points because preparing your mindset will help concentrate on few lenders who offer a good deal. In a deal,  the personal loan interest rate is essentially the main point, but there are other factors.

So, here’s what we will do. We will share tips on choosing good lenders. Then have an example of Axis bank personal loan to understand clearly.  Let’s begin with the first point.

The Necessity of the Loan

You know, getting a loan is easy. The hard thing is to pay it off over the month or years. So, contemplate the situation, analyse if it is necessary to take the loan. There is no other way to get the funds to end the financial distress.

Once you have finished analyzing and finding out. Here are some lenders to start with.

• Axis Bank personal loan
• CASHe personal loan
• SBI Personal loan
• HDFC bank personal loan
• Indiabulls instant personal loan
• Lendbox instant loan
• Moneyview instant personal loan
• MoneyTap personal loan
• Bajaj Finserv personal loan
• TATA Capital personal loan

The research starts

Apart from these lenders,several traditional NBFCs and app-based lenders are offering the instant loan. So, take at least one week to research every lender you have in mind. The first thing you have to look if they are offering the loan amount you require.

Some lenders offer as low as Rs 1,000, and others go up to Rs 40 lakhs. In between, your number will lay. So, research a lender seeing their loan amount, personal loan interest rate, the terms & conditions, etc. Also, look for other features too such as charges, types of loans.

For example, if you have debt, could a lender offer a balance transfer. If you are choosing Axis bank, does it offer It’s all part of the research. The deeper your research is, the better lender you will get.

The loan tenure, charges, and interest rate

During the research, you will have to check out the interest, the additional charges, and the loan tenure. The interest rate is lowest at 10% to a maximum of 40% P.A. it depends upon your creditworthiness to get a lower rate of interest. Axis bank personal loan balance transfer features?

The additional charges are the penal charges, late payment charges, swapping charges, processing fees. They increase the cost, so you will have to choose a lender whose charges are low.

Then there is the loan amount. The lowest tenure is three months and a maximum of 5 years. In some particular cases, SBI does offer up to 6 years of the term.

So, these are the main tips to follow.  Going according to these points will help in finding the right lender. Now, we will check out the Axis Bank personal loan as an example to get things clear.

Axis Bank personal loan

The Axis bank personal loan is one of the best options out there in the market for needing immediate funds. It requires minimal documents, has quick approval, and offers eDGE loyalty points. To check personal loan interest rate online of Axis bank, visit its official website.

• Axis bank offers a loan amount from Rs 50,000 to Rs 15 lakhs.
• The rate of interest starts at 12% P.A.
• The processing fee is up to 2% of the total loan amount.
• The loan tenure is a minimum of one year and a maximum of 5 years.

Fee & other charges

• The penal interest is 2% monthly on the overdue installments.
• The swap charge is Rs 500 per instance.
• The foreclosure charge is from 2% to 5% on the outstanding loan amount.
• The duplicate NOC charge is Rs 500 per instance.
• The instrument return charge is Rs 500 per instance.

The eligibility criteria for Axis bank personal loan

• The applicant should be a salaried individual or employee.
• The age should be between 21 years and 60 years.
• The minimum monthly income should be at least Rs 15,000.
• The applicant should have a minimum of two years or 24 months of work experience.

Features of Axis bank personal loan

• Axis bank requires minimal documents to apply for the loan. It saves time as well as speed up the loan process.
• The loan is quickly approved if everything is in order. The dedicated team at Axis bank makes sure the disbursement happens timely to avoid delay.
• The rate of interest is competitive & negotiated.
• There are eDGE loyalty points to rewards its customers.  There could be a credit card fee waiver or lowering the interest rate.
• The loan tenure is flexible, going up to five years.
• There are Axis bank personal loan balance transfer features if you wish to combine other debts into this loan.

Required documents for Axis Bank personal loan

• The personal loan application form
• 4 Passport size photographs
• Proof of identity – Aadhar card, Voter ID card,  Driving license, Passport
• Proof of residence – Lease agreement, Telephone bill, water bill
• Proof of income – Bank statement, Passbook statement, Salary slips, and ITRs papers
• Qualification proof for a doctor, C.A., C.S., etc.

How to apply for an Axis bank personal loan?

It is easy to apply for Axis bank personal loan. Visit the official website, fill out the application form or go to the nearest Axis bank branch to do it.

The conclusion

So, we have covered the tips to follow and having the example of  Axis personal loan  details.  This is just the starting point. As your research deepens, you will find out good deals. However, it will vary from borrower to borrower. Hope they will help you in getting a personal loan as per your need.