5 Factors to Consider Before Applying for Personal Loans

Personal loans are growing in popularity. It has been observed that by February 2023, the amount of outstanding personal loans was more than ₹40 lakh crore, which is a 20.4% increase as compared to the previous year. 

The easy availability of personal loans, their nature of unrestricted use, and the lack of need for collateral make personal loans the most lucrative option to obtain immediate funds for emergencies. 

If you ever face a cash crunch, applying for a personal loan is one of the most recommended options that you can go for. However, you must be vigilant and apply for the best personal loan deal wisely.

In this post, we will share the top 5 tips to help you pick the best personal loan option to fulfil your financial needs.

5 Tips to Get the Best Personal Loan Offers

Follow the below-mentioned guidelines that will help you grab the best personal loan deal in the market:

1. Assess Your Personal Loan Needs and Apply Accordingly

If you are wondering how much personal loan can i get, it is suggested to stick to the loan amount that you require. Going overboard can be painful to adjust in your monthly budget.

Moreover, the higher the loan amount, the higher the interest charges. You may get lured by enticing deals that offer extremely high personal loan amounts; however, you must consider the EMI and monthly income ratio before you take your pick. 

Use a personal loan EMI calculator to assess your monthly obligation and see how well it fits in your monthly budget. 

2. Compare Different Loan Providers

Significantly, you compare different personal loan providers based on:

  • Documentation process
  • Flexible loan tenures
  • The total cost of borrowing money
  • Consumer support services
  • Testimonials and feedback from existing consumers
  • Credibility and brand reputation of the financial institution in the market.

You must only trust reliable sources and look out for the best deals on personal loans offered by them. 

You must request loan estimates from various providers, review these estimates, compare integral parameters, fine-tune and negotiate with the financial institution, and select one that offers the best deal.

3. Use a Personal Loan Eligibility Checker and Decide Accordingly

It is imperative to check the eligibility criteria of various loan providers before you apply for one. Some come with stringent rules and protocols, while others go easy on the eligibility criteria. Normally, your eligibility for acquiring personal loans is based on age, employment, stability of income, and creditworthiness. 

Settle for the financial institution that offers you the best deal and relaxed eligibility options. Use a digital Personal Loan Eligibility Checker before you apply to avoid rejection and multiple loan applications. 

You must remember that rejections on personal loan applications and multiple applications can result in a dip in your credit score. So, you must smartly assess all options online before you select the right option.

4. Look for interest rates, Low Charges, and Lucrative Offers and Deals

One of the key factors to consider before picking the best personal loan provider is low charges. 

The primary charge that is levied on personal loans is the interest rate, which varies between 8.75% to 49.5%. Other charges are loan processing, foreclosure, missed payment penalties, etc. These charges vary from one loan provider to another. 

Thus, you must carefully select the one that offers you the lowest rates of interest and low fees and charges on loan application and processing. 

Besides charges, many vendors offer lucrative deals and offers, which could be in the form of free insurance, reward points, or access to other services. It is important to consider such aspects so that you get the best deal on personal loans.

5. Instant Approval and Disbursal

Before you apply for personal loans, you must check the approval and disbursal process of personal loans. Many financial institutions offer instant applications, online submission of documents, and instant approvals after verification through mobile apps or website applications. 

As soon as you get the approval, the loan amount is immediately disbursed within minutes to your bank account without further verification procedures. 

Make sure you consider financial institutions that are quick and instant with the process so that you can resolve your financial needs immediately.

It is important to go through the terms and conditions of the loan provider, along with reviews and ratings of existing customers, to understand how quickly it can process loans.


There are a plethora of personal loan offers and deals in the market. However, you must ensure that you pick the right loan provider and trust only the best source. 

The objective is to acquire a personal loan at the lowest charges and the most feasible and convenient repayment schedules. 

Make sure you refer to the above-mentioned recommendations and smartly plan your loan journey without taking unnecessary stress.

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