Money is one factor that is surely an indispensable part of your life. You may need money during many stages of your life. If you need some large amount to meet any urgent needs, then you can always rely on the personal loan facility. Based on your loan eligibility, you can avail a loan amount of up to Rs.25 lakh from top lenders.
Using the personal loan calculator, you can know an amount that a lender can sanction. It can help you in applying for an exact amount that you can get the approval easily. A personal loan is an unsecured finance. It carries two types of interest rates. It is either reducing or the flat rate. Let’s know which option is better for you in this post! Flat rate As the name suggests, the rate of interest charged in this scenario is fixed for the entire tenor. You are aware of the exact interest payment that you will make. Even after you have paid a few EMIs and the principal has reduced, you continue to pay interest on the entire amount. Reducing rate On the other hand, the reducing interest rate applies to the remaining principal amount. The reduced rate of interest gets calculated on the outstanding amount. When the principal amount gets reduced year after year owing to EMI payments, the total rate of interest also keeps on lessening. You are aware of the differences between the reducing rate and the flat rate. You should choose a personal loan with an interest type as per your needs. The best way to opt for the personal loan is by comparing the offers on a third-party website. This way, you will be able to pick the best deal as per your needs and repayment capacity. Must Read: Choose Better Option Between Reducing and Flat Interest Rate
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |