Personal loans in India form a competitive market space. There are a lot of banks that wish to lend money to the creditworthy and increasingly affluent middle class. Just one search at an intermediary’s website (loanwaala.com or bankbazaar.com, for instance) brings out more than 40 different providers. This mind boggling choice confuses customers and pretty often they end up making the wrong choice. It is, therefore, in the best interest of the borrower to conduct due diligence before they take the loan. This may sound strange to some people, who think that they are receiving money and the bank is the one that should conduct the check. But as you shall see, each personal loan in India has longer lasting implications. Here is an indicative checklist of the factors to consider.
Personal Loans, India: Important Considerations
Consider Future Possibilities: It is quite likely that you will need personal loans in future as well. A diligent borrower does not plan for contingencies when it arrives. The smart ones are ready with their credit in place. There are some personal loan providers who help you top up your loan with minimum fuss, once they have a favourable experience with you. This favourable experience is usually 12 months of default free repayment. Therefore, the next time you apply for a loan with these providers, they are ready to help at a minute’s notice, cutting the unnecessary formalities and the time taken.
Look At the Procedural Requirement: There are many personal loans in India that will make you go through unnecessary hassles. They may require guarantors or collateral, which defeats the whole purpose of a personal loan. A personal loan is by definition unsecured. They may charge you low interest rates, but then it doesn’t fall into the category of a personal loan in India.
Consider Loan Servicing Track Record: Also, since such loans are long term relationships, you may want to deal with a professional. Imagine you making a last minute payment and it does not reflect on your account and you get charged for late payments. Even if there are no charges, there is your credit history at CIBIL (Credit Information Bureau India Limited) and you wouldn’t want to mess with that! All the interest rates that you will be offered in the future depend on that score.
To conclude, one must understand that there is little to choose from when it comes to interest rates and personal loans in India. The short tenure and competitive market space ensure that all lenders offer almost similar rates. It is better to choose on the basis of service. Look at your lender as an ally, who you are cultivating for help today as well as in the future.
Personal Loans India – If you are looking for personal loans in India that offer competitive rates as well as professional world class service, log on to www.citibank.co.in. Citibank is synonymous with quality customer service, round the clock. After all Citi Never Sleeps!