Proven Tips to Choose the Best Personal Loans in the Market

The idea of choosing the best lender for your personal loan is often encountered with a string of dilemmas – which lender to opt for? What is advantage of choosing one lender over another? What are the various tenure options and rates available? Are rates offered by lenders claiming to offer the best rates in the market binding?

It isn’t unusual to get locked in a web of …. Questions. These are queries every borrower will invariably have.

These awesome tips will help you choose the best personal loan (with the best interest rates of course) from several available options.

Here are some effective and proven tips to pick the right personal loan and the best interest rates.

Choosing the right lender

Let’s begin by tackling the first stage of the conundrum. It is quite a known fact that there are a multitude of personal loan lenders in the market, each of course claiming to have the best personal loan offers in the market.

Lenders these days can be classified into two main categories – Traditional and New-age. In the “traditional” category you’ll find lenders among the likes of top private banks and financial institutions offering various forms of secured and unsecured credit. In the new-age category (which of course is the more sought after option in present times) are lenders that go by the name of Fintechs. Fintech lenders associate themselves with more advantageous features – we’ll discuss them in detail at a later stage.

The most affordable interest rates in the market

As we’ve already mentioned, different lenders offer loans at different rates. The idea is, of course, to go with a lender offering you the best rate in the market. But on closer observation, you’d realise a very interesting aspect.

The interest rate on your loan application will depend on your credit score and credit history (past repayment history). So technically, even if you choose al lender that claims to offer the best personal loan interest rates in the market, the rate offered by the lender will depend on your credit score. This again raises the issue of how to pick the right lender and the most affordable personal loan for your requirements. There is a solution of course, read on.

Paperless loan applications

If you aren’t aware already, personal loans have more or less taken the paperless route, and not many lenders have been left behind in the journey. Paperless loan applications are more preferred, as they don’t particularly involve physical paperwork. While banks are slowly moving to paperless loan applications, Fintechs have raced past ahead. Fintechs allow you to complete the entire application, from start to end, online. So, in your quest to choose the ideal lender offering the best rate in the market, this is one factor that you might want to consider, as rates will invariably depend on your credit profile.

Turnaround times

Now here is where the most important part of picking the right lender surfaces – the turnaround time for your loan application. More so, this is exactly where the difference lies among traditional lenders and new-age Fintech lenders. While traditional lenders take a minimum of 7 days to process and disburse your loan, Fintech lenders take just about 48 hours. So if you’re in the midst of an emergency, you know who to go to.

Qbera – a Fintech company that lets you put your research (for the best lenders), to rest

We’ve just talked about the various parameters that you must consider while picking the right lender for your personal loan. Let’s look at what Qbera has to offer:

A paperless application

Paperless applications take lesser time to be processed and don’t involve usage of paper (of course, the term rightly suggests so). Going by this, you don’t have to waste time and energy on submitting large chunks of physical documents to process your application.

A low credit score isn’t a deterrent

If your credit score has taken a hit due to late payments or other issues that bring down credit scores (Credit Utilization Ratio, Debt to monthly income ration, multiple debt sources), it isn’t really a deterrent when you apply for a loan with Qbera. Applicants with a minimum credit score of 600 are eligible for personal loans with Qbera. And yes, these applicants can qualify for the best personal loan offers in the market as well, through Qbera of course.

A low income won’t affect your chances either

Most traditional lenders have a high-income eligibility criteria for loans that they offer. With Qbera, you can get a personal loan even with an income as low as Rs. 20,000 per month.

Living in a shared accommodation? Definitely not a dampener

With Qbera, you can get access to personal finance even if you’re residing in a shared accommodation. On the contrary, traditional lenders do not consider applications of individuals living in shared accommodations.

We hope these very pertinent and important points will provide you with valuable inputs in your quest of narrowing down on the ideal lender in the market.