High interest rates are always an issue while selecting the personal loan option. So take into account various rates offered by different lenders. Carefully examine all the terms and conditions of the respective lenders. You have three options available for choosing interest rate payment – fixed, floating and flat rate.
You need to maintain a good credit history and a good rapport with banks. This helps in lowering interest rates to some extent.
Few main points to be kept in mind are:-
- Amount of loan
Lower the amount of loan, lower is the loan tenure and EMIs.
- Duration for Repayment
If the loan amount is large, opt for longer period for repayment. It lowers your EMIs but becomes more expensive in the long run.
- Fees or Charges
Calculate all the costs associated like processing fees, pre-payment or late payment charges, service tax etc.
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