When you apply for a Personal loan, the most important thing which you will notice is the interest rate being offered to you. Of course that’s very valid because the rate decided will determine the total cost of your loan.
Everyone wants a low interest rate so they can save money and also get the loan amount they desire. Mostly interest rate becomes the deciding factor of choosing the loan provider.
However this must not just be the only number that an individual must be concerned about. There are 4 such numbers apart from interest rates that you must understand:
- Processing Fees:
You must know that while you are submitting your loan application, processing fees will be taken. These fees will revolve around 1-2% of the loan amount.
What you must understand is that in most of the places, this amount is non refundable. That means even if your loan application is rejected, you will not get these fees refunded back to your account.
- Eligibility Value:
After processing fees if there is an amount which you must be concerned about that will be the eligibility amount. When you apply for a loan amount, if it happens to be above what you are eligible for, then you might have to face a rejected loan application.
This can affect your financial standing and hence to avoid all this, we suggest you to use online loan eligibility calculator. Through this you will get a clear picture and can apply for the loan too.
- Monthly Installments:
It is very important to understand how much EMI you will need to pay monthly. This is because you need to plan your expenses and also have savings which will help you repay the loan with ease.
Hence before signing the loan, please be certain if you will be able to repay the monthly EMI. Just use the EMI calculator and understand what kind of an EMI you will be exposed to.
- Credit Score:
The last number in this list also happens to be the most important number. Credit score has been very important and slowly people have understood the importance of it.
So if your score is very high (e.g. above 750 at least) then you can negotiate well with the Bank and lower the interest rates too. Getting the best deal is possible with a high credit score. Check your Credit Score now.