If you are short on funds, a personal loan is an option you can consider. Whether it is to buy a consumer good or to take your family on vacation or to meet your festive expenses, the personal loan remains a popular source for many individuals. No wonder, personal loans grew almost twice from Rs 75,088 crore in FY19 to Rs 147,236 crore in FY22, and quadrupled growth in volume , rising from 39.9 lakh accounts in FY19 to 158.1 lakh accounts in FY22.
Taking out a personal loan has become much easier these days as most lenders provide digital ways to request the loan amount. The process of applying, getting the loan and finally disbursing the loan has been shortened mainly due to the use of technology. “Most banks and NBFCs now have digital capabilities and infrastructure in place that have made personal loan disbursements much faster. If you have an existing relationship with the lender, payments will likely be even faster. However, disbursements are fastest for certain customer segments, which are eligible for pre-approved offers. Typically, disbursements here take place within hours of the request, in some cases within minutes,” informs Sahil Arora – Senior Manager, Paisabazaar.com.
In addition to the banker you already have an account with, try exploring interest rates from other lenders. Apply for the EMI by lakh based on your credit score, loan amount and other parameters. “For any type of credit, it is essential to compare the different offers available to select the best and most suitable one. Applicants should therefore visit online financial markets to compare personal loan offers available from several lenders on the basis of their credit score, income, professional profile, employer profile, etc. Sahil explains.
To maintain a lower EMI, you can opt for a longer term, however, the interest charge might be high in such a case. When it comes to comparing personal loans, also look at the processing fees and prepayment fees that the lender may charge in your loan agreement. Also, make sure to make the EMI payments on time within the stipulated time, otherwise high fees might be charged as a penalty.