Everything you need to know about personal loan rates

THE HANS INDIA |   Sep 13,2017 , 03:14 PM IST

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Representational Image

When you require quick yet short term equity or cash flow, personal loans have proven to be the saving grace. These short term loans take less processing time, without much questions asked and you also get the funds quickly, like less than a week or so. You can choose to spend it however you want, you can buy furniture or even groceries for your house, pay for your child’s tuitions, or maybe take a vacation, no one is going to ask you why. 

All said and done, borrowing money is easy and simple, yet you need to know the best applicable rates for your situation. With new banking ventures springing up you have a long list of places you can borrow money from but the important factor to consider is to know which rates would suit you best. 

You can get advice on the best personal loan rates from financial advisors and banking websites and blogs but keep in mind that interest rates vary from day to day. It is advisable to select the loan with fixed interest rates so that the repayment amount will not increase during the term of the contract.

Best personal loan rates
Interest rates vary in accordance with the sum you want to borrow. If the amount you want to borrow is lesser, then it is advisable to go for the 0% credit card option, but only if you are sure to repay the amount within the stipulated time, otherwise the repayment amount will exceed by a great percentage.

If the amount is bigger, then the best option is to do a market study and compare the rates various companies are offering and choose the best option. There is no guarantee that one particular rate is the best since every loan contract is different from each other. Thus, it is important to have a careful study of the ongoing rates in the market.

Myths and the reality
Despite the simplicity of procedure and less time consumption, there are many myths that surround personal loans market that prevent the people from getting the best loans at the best rates. 

A few of the myths are listed here to make you aware and help you decide and get the best personal loans. 
●    Personal loans have no tax benefits.
●    Personal loans are the most expensive loans in the market.
●    One can get personal loans from big banks only.
●    Personal loans have a tedious process for approval.
●    One can apply for personal loans from multiple lenders.
●    One should borrow more than they need.

As said earlier, these are in fact myths. There is very little or no truth in these myths. Personal loans are the easiest and the simplest loans one can get anywhere in the world. Your credit ranking is a basis for your eligibility for the loans; however, many lenders do give the amount even if you have a poor credit history or ranking.

It is safe to say that personal loan is the best way to solve your immediate requirement of cash inflow but it is crucial to keep the personal loan rates in check when considering the loan.

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