How to Choose the Best Personal Loan Offer

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Wide Choice

Curated offers from 30+ lenders

Quick Disbursal

Money in your account instantly

SmartMatch

Offers ranked according to eligibility

Digital Process

Hassle-free & paperless

Why is Comparing Personal Loan Offers Important?

Every personal loan offer is different and comes with different terms and conditions. A personal loan offer consists of the following, based on your creditworthiness.

Loan amount based on your eligibility
Interest rate
Tenure of the loan
Estimated EMI
Processing fee and other charges

Hence, it is important to choose a combination that helps you meet your financial needs without stressing your finances.

How to Compare Personal Loan Offers

To choose the best personal loan offer on Paisabazaar, you can follow the steps mentioned below:

Compare Pre-approved Offers: Usually, pre-approved offers come at relatively low interest rates and at better loan terms. Consider them before opting for the first available loan offer.
Compare Interest Rates: Start by comparing personal loan interest rates across different offers. Even a small difference in rates can save you a considerable amount.
Calculate the EMI and Total Repayment: Calculate the EMI of different loan offers to find the one best suited for your repayment capacity and a balanced cash flow.
Calculate total cost of loan: Personal loans come with multiple fees and charges. They add to the total cost of the loan. Taking them into consideration helps you choose the loan with the lowest cost.
Offered amount vs amount requested: The loan amount offered may be different from the loan amount requested. This may be different for different lenders. Choose the lender offering you the desired loan amount with the best loan terms.

How to Know Which Personal Loan Offer is Best for You

Choosing the best personal loan requires careful consideration. To help you, we have provided a situation-based scenario in the table below:

If your priority is	Look for
Lower total cost	Lower interest + reasonable fees
Balanced monthly EMI	Suitable longer tenure
Higher loan amount	Offer with sufficient eligible amount
Faster funding	Lender with a quicker process
Better approval chances	Offer aligned with your credit profile and eligibility

What Determines Whether You Will Get Approved for a Personal Loan?

Multiple factors determine personal loan approval, including:

Credit Score and Credit History: Your credit score can be considered your financial report card. A credit score of 760+ with a strong credit history of timely payments and dues makes you a favourable applicant.
Income and Employment Stability: Your income and employment status determine your repayment ability. A consistent income and stable employment show stronger repayment capacity, boosting loan approval chances.
Existing EMIs and Debt Obligations: Lenders usually prefer a debt-to-income ratio of 50-55% (including EMIs of the proposed loan). Anything above this may lead to loan rejection.
Loan Amount Requested: Applying for a loan beyond your repayment capacity can lead to rejection. Calculate affordable loan amount using Paisabazaar’s Personal Loan Eligibility Calculator and apply accordingly.
Age and Other Eligibility Criteria: Check the age and eligibility criteria of a lender before applying. This can help you boost your approval chances.

Common Mistakes to Avoid When Choosing a Personal Loan Offer

Choosing solely based on the lowest advertised interest rate: Comparing other charges helps you understand the total cost of the loan.
Looking only at the EMI: Take into consideration other charges, loan terms & conditions and more.
Ignoring processing fees: Personal loan Processing fees add a few thousand to the total cost. Look for lenders offering waived processing fees.
Borrowing more than required: Borrowing more than needed can increase the risk of missed repayments. Borrow only what is needed, not what is offered.
Applying to too many lenders simultaneously: Applying to too many lenders for personal loans can make you look credit-hungry and bring down your credit score.
Assuming a pre-approved offer guarantees disbursal: Pre-approved offers do not guarantee approval. They only indicate the higher approval chances based on your entered details.