Instant Loan: Have you got an offer for instant loan? Don't rush.. Check these things first..

Instant Loan: In today's era, it has become very easy to take a personal loan. Just enter your mobile number on the bank or fintech platform, complete eKYC, and upload the necessary documents, and you can get a loan offer in minutes.

If your credit score is good, then you get an offer with a better interest rate and a higher limit. But here a big question arises: after getting an offer, should you agree to it, or should you also look for offers from other lenders? Also, it is important to know what things you should keep in mind. Let's know.

Keep in mind the validity of the offer.

Many times, the loan offer of a bank or fintech is valid only for a short time. That is, you have to claim it before the stipulated time. In such a situation, if you delay, the offer may expire. That is why whenever you think of looking at other options, it is important to keep the time limit in mind.

Interest rate is the biggest factor.

The most important factor in choosing a loan is the interest rate. If you have a good credit score, you can get a deal at a lower interest rate from a lender. Even a small change in the interest rate can save you thousands of rupees in the long run.

Loan amount Interest rate 12% Interest rate 14% Difference
₹5 lakh ₹60,000 per annum ₹70,000 per annum ₹10,000
₹10 lakh ₹1,20,000 per annum ₹1,40,000 per annum ₹20,000
Processing fees also lighten your pocket
While taking a loan, one should pay attention not only to the interest rate but also to the processing fee. Sometimes a low-interest-rate offer looks good, but a heavy processing fee is added to it. This reduces the amount you get in your hand. For example, if a 2% processing fee is charged on a loan of Rs 5 lakh, you will have to spend an additional ₹10,000.

Hidden expenses can become a headache.

Many times, hidden costs are not revealed while taking a loan. Such as prepayment charges, late payment fees, or mandatory insurance expenses. All these come to light later and become heavy on the pocket. Therefore, before taking a loan, read the terms and conditions carefully and try to compare them with those of other lenders.

Advice from friends or experts is also useful.

Many times, the experience of a friend or relative of yours can prove to be a better guide for you. If they have got a good deal from a bank or fintech, then you can also check the offers from there. A personal loan is not just a deal of money but also a matter of trust and convenience.

Conclusion
It is not wise to take an immediate decision as soon as you get a personal loan offer. It would be better if you compare it with other lenders by looking at the interest rate, processing fees and hidden costs. A little research can save you thousands of rupees and lead you to the right decision.

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