First and foremost a warning... a very "strict warning"... please don't take a personal loan.
However, if you are constrained by difficult circumstances, please follow the 5-C Formula to choose one.
Let me explain:
How do you buy the best diamonds?
By evaluating the five C’s namely Carat, Colour, Clarity, Cut and Certification.
Likewise, there are five C’s for assessing the best and the cheapest among the personal loans.
Given their collateral-free nature and practically no restrictions on the end-use, personal loans are extremely popular. But, they can be very destructive. So, here are my five C’s to make sure that you get the best deal on your personal loans:
Cost
This, of course, is no brainer. Interest payable on the personal loan should be the minimum. It shouldn’t pinch your pocket. Right?
But, beware!
Interest is not the only cost. There will be loan processing fees. There may be loan documentation charges. And probably some administrative expenses too.
So, always consider the all-inclusive costing. A simple strategy would be to simply add up the EMIs and all the sundry expenses. Loan that depletes your bank account the least, is the cheapest one.
Clarity
But cost is just one part of the story. Besides this quantitative aspect, there are qualitative parameters too.
Are the application forms and other documentation short, sweet and simple to understand? Or do they contain lots of legal mumbo-jumbo? Can the interest rate be revised midway through the loan? Can there be a demand for immediate repayment mid-term?
These, and such other terms and conditions, of the loan offer should be so simple and clear, that you should be able to understand them over a cup of coffee. Hope your coffee doesn’t turn cold by the time you finish reading the so-called fine-print.
Convenience
The ease of applying for the loan!
The ease of furnishing the desired documents!
The ease of making payments!
The ease of tracking your loan!
In today’s fast paced world — with expanding desires and shrinking time — you don’t want to get mired into unending bureaucratic policies and procedures. That’s where the ease of loan comes in.
Here's the list of key Ten Things To Know About Personal Loans.
Clock
Next C is the Processing Time!
How long would it normally take… from the moment you lodge your request for a personal loan... for the actual cash to land up in your bank account?
Ideally, you should NOT be looking at a calendar and counting days. Rather your focus should be on the clock and you should be counting the hours.
Closure
Should you wish to close your loan account before the due date, you should have the freedom and flexibility to do so. There should be no strings attached to such prepayment… no penalty, no restrictions, nothing. That’s the ideal. If you are not being offered such a deal, ask for it.
In past, personal loan was not recommended as the first choice. Secured loans were typically cheaper and quicker, as the banks had the comfort of the collateral. But times have changed.
Two more C’s have since made a debut… Credit Score and Competition.
Nowadays, it’s possible to your know creditworthiness, instantly, through the Credit Score maintained by various credit bureaus in the country. And, then there is Competition. These developments have
(a) narrowed the cost-gap considerably between the secured and unsecured borrowings
(b) and also slashed the time-frames from loan application to disbursement.
These then are the five, or rather, seven C’s that will help you to zero in on the best and the cheapest Personal Loan. Try it out… now!
Wait, please spend Five Minutes To Check Whether You Should Become A Borrower.
However, if you are constrained by difficult circumstances, please follow the 5-C Formula to choose one.
Let me explain:
How do you buy the best diamonds?
By evaluating the five C’s namely Carat, Colour, Clarity, Cut and Certification.
Likewise, there are five C’s for assessing the best and the cheapest among the personal loans.
Given their collateral-free nature and practically no restrictions on the end-use, personal loans are extremely popular. But, they can be very destructive. So, here are my five C’s to make sure that you get the best deal on your personal loans:
Cost
This, of course, is no brainer. Interest payable on the personal loan should be the minimum. It shouldn’t pinch your pocket. Right?
But, beware!
Interest is not the only cost. There will be loan processing fees. There may be loan documentation charges. And probably some administrative expenses too.
So, always consider the all-inclusive costing. A simple strategy would be to simply add up the EMIs and all the sundry expenses. Loan that depletes your bank account the least, is the cheapest one.
 |
| Choose your Personal Loan as if you are buying a Diamond. |
Clarity
But cost is just one part of the story. Besides this quantitative aspect, there are qualitative parameters too.
Are the application forms and other documentation short, sweet and simple to understand? Or do they contain lots of legal mumbo-jumbo? Can the interest rate be revised midway through the loan? Can there be a demand for immediate repayment mid-term?
These, and such other terms and conditions, of the loan offer should be so simple and clear, that you should be able to understand them over a cup of coffee. Hope your coffee doesn’t turn cold by the time you finish reading the so-called fine-print.
Convenience
The ease of applying for the loan!
The ease of furnishing the desired documents!
The ease of making payments!
The ease of tracking your loan!
In today’s fast paced world — with expanding desires and shrinking time — you don’t want to get mired into unending bureaucratic policies and procedures. That’s where the ease of loan comes in.
Here's the list of key Ten Things To Know About Personal Loans.
Clock
Next C is the Processing Time!
How long would it normally take… from the moment you lodge your request for a personal loan... for the actual cash to land up in your bank account?
Ideally, you should NOT be looking at a calendar and counting days. Rather your focus should be on the clock and you should be counting the hours.
Closure
Should you wish to close your loan account before the due date, you should have the freedom and flexibility to do so. There should be no strings attached to such prepayment… no penalty, no restrictions, nothing. That’s the ideal. If you are not being offered such a deal, ask for it.
In past, personal loan was not recommended as the first choice. Secured loans were typically cheaper and quicker, as the banks had the comfort of the collateral. But times have changed.
Two more C’s have since made a debut… Credit Score and Competition.
Nowadays, it’s possible to your know creditworthiness, instantly, through the Credit Score maintained by various credit bureaus in the country. And, then there is Competition. These developments have
(a) narrowed the cost-gap considerably between the secured and unsecured borrowings
(b) and also slashed the time-frames from loan application to disbursement.
These then are the five, or rather, seven C’s that will help you to zero in on the best and the cheapest Personal Loan. Try it out… now!
Wait, please spend Five Minutes To Check Whether You Should Become A Borrower.
