Here’s how to ensure your Personal Loan is easily affordable

Hidden charges can increase the overall cost of your personal loan. Read the following article to ensure that you are applying for a personal loan that you can easily repay!

While a personal loan can be a great way of arranging for the required funds for your personal expenses at hand, it is also essential to make sure that the loan is affordable. This does not just involve focusing on the interest rate of the loan, but also taking into account the additional charges that lenders levy on personal loans. Read the following article to learn more about additional charges that you might have to pay when you apply for a personal loan:

What are the additional charges that lenders levy on a Personal Loan?
 

Let us now discuss the common charges that must be borne by the borrower of a personal loan. Here is the list of charges that you must bear if you wish to take a Personal Loan with IDFC FIRST Bank.

·  Processing fee: A processing fee of 3.5% will be deducted from the loan amount at the time of disbursal.

·  EMI bounce charges: EMI bounce charges worth ₹400 are charged for each presentation dishonoured.

·  Repayment instrument swap charges: IDFC FIRST Bank charges ₹500 per change request.

·  Statement of Account: IDFC FIRST Bank charges ₹500 for a Statement of Account.

·  Duplicate no objection certificate: You will need to pay ₹500 per request, in addition to the bank’s issued letter.

*  disclaimer : above charges are excluding the GST and subject to change

Here’s what you need to keep in mind to avoid hidden charges and make sure your loan can be repaid without any financial complications:

1. Read and understand the loan documents
 

A loan agreement contains the following important details regarding your loan:

·  Personal loan interest rate

· The repayment tenure of the personal loan

·  The mode of repayment

·  The terms and conditions of repayment of the personal loan

You must check and re-verify all these details carefully before signing the personal loan agreement. Make sure to re-check the personal loan processing fees, interest rate, and other details before signing.

2.  Plan your repayments
 

It is always helpful to be aware of your personal loan repayment cycle and plan for the repayment of your loan in advance. One of the best ways to plan your personal loan repayment is to use a personal loan EMI calculator like the one on IDFC FIRST Bank’s site. This calculator is an online tool that requires your loan amount, repayment tenure, and interest rate. With these details, the calculator then provides the EMI (Equated Monthly Instalment) value. By being aware of your EMI payments in advance, you can easily plan for the repayment of your personal loan. Here is a brief overview of the benefits of using IDFC FIRST Bank’s personal loan EMI calculator: 

·  Being aware of EMI values beforehand

·  Budget management

·  Better tenure selection

·  Quick and accurate results

·  Convenience

·   Instant results

3.  Prefer a reputed lender to avail of a Personal Loan

Anyone who wishes to get a personal loan today can find multiple lenders online. However, before applying for a personal loan, you must assess the reputation of the lender in the market and check whether they charge any additional fees along with the loan. You must always avail of a personal loan from a reputed vendor to avoid paying any such additional charges that are included in the processing fees. Click here to check out IDFC FIRST Bank’s personal loan and its features. 

4.  Assess the various types of fees
 

The loan agreement document consists of a list of various fees; including processing fees that must be carefully assessed by the borrower. If you wish to take a look at the personal loan processing fees offered by IDFC FIRST Bank, click here to know more.
Follow these four tips to avoid paying any additional charges while applying for a personal loan. To summarise – read the loan documents carefully, plan your repayments, approach a reputed lender, and assess all kinds of fees applicable.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.