Need Instant personal Loan? Make sure you know these things before applying

When you need an instant personal loan, you go on Google, looking for ways to get it. You see
multiple websites who provide personal loans, download many instant personal loan app,
checking them out. However, before you try out these apps or websites to avail of personal
loans, you have to know a few things. 

These things are extremely essential since they will affect your repayment terms, and interest

rate and overall cost. Finally, we will tell you the best instant personal loan apps. So you can choose the best platform to avail a personal loan. 

So, here we will discuss terms such as Interest rate, processing fee, and other things. Keep

reading to know more. 

What are the factors affecting the Interest rate? 

There are at least three factors that affect your interest rate. Depending on these factors, your

loan interest rate could be lower or higher. Those three factors are:

1. Income – How much you earn directly affects the interest rate. If you have a higher salary, it means you can pay back the loan quickly, thus receiving a low-interest rate.
2. Credit Score – When you apply for a personal loan, this is the first thing a bank check. The credit score works like a person's financial window. A good credit score means you are good at repayment. It will boost lender confidence. 
3. Stability in job or Business - Every lender will check about your current job or business. Every lender prefers to give loans to those who are in the same job for at least the last six months. For self- employed, it is around two years. 

Depending upon these factors, Lenders will decide your loan interest rate. It can range from

11% to 36%. 

Calculating the overall cost 
When you are applying for a personal loan, the interest rate is not the only cost you will have

to repay. There is a processing fee, Prepayment fee, and late payment fee. Let's see what these
terms are? 

• Processing fee - Every lender will charge a processing fee to complete the process. It depends on the lender how much they will cost. Some lenders don't charge at all. Some charge a fixed amount, for example, Rs, 500/-. Some lenders charge from 1% to 5%. So while choosing a lender, carefully examine their processing fee as well. 
• Prepayment Fee – Suppose you took a personal loan for six months. However, things improved, and now you are ready for full repayment in three months. So, few lenders charge you if you decide to pay the entire loan amount in advance. It is called a prepayment fee. Check out what different lenders charge in such cases. 
• Late Payment Fee - As there is a prepayment fee, there is a late fee. If you are late on a payment, this will increase the overall cost. 

Which Lenders are best to apply for an instant personal loan 
Many apps provide an instant personal loan. There is Afinoz, Zest Money and MoneyTap. The

more traditional lenders are SBI personal loan instantly, HDFC personal loan, and others. 

So, these are the things you have to know before applying for a personal loan.