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.
