Are you hunting high and low for the best personal loan companies that offer loans at an affordable rate of interest?
When you are in a witch hunt to borrow money, don’t go to any lender that your friends or colleagues recommend. When you take a personal loan without comparing the loan providers, you are liable to pay high-interest and need to fulfill the stiff repayments terms that will significantly lift the interest payable on the loan amount.
Personal loans are one of the best affordable options when you get it right. Apart from that when you repay the loan amount without any default your credit score will be improved and in the future, you can borrow money with an attractive discount from the lender.
Unlike a Credit card, you can’t top up your amount. You have borrowed a fixed amount so this will make it much easier to repay the loan within the term duration.
How to pick a best personal loan company
When you want to improve your life by outdoor vacation, buy a new gadget to ease your life, or buy an HD television for a better visual experience. A personal loan is a one-stop solution to make your life easier. Let’s take a glance at how to pick the best personal loan before you apply for a personal loan.
The maximum Loan amount – When you are applying for a personal loan, calculate how much money you need to cover the expenses. There are various lenders that offer Flexi personal loans. These lenders allow a customer to withdraw loans in part, as and when required to a fixed amount. You need to pay interest accordingly on the loan amount and tenure of the loan.
The interest rate – When you looking for a personal loan lender, take a look at what interest rate the lender charges you for the loan.
Processing Fee – The lenders charge a processing fee between 2 and 3%. Before applying, check out what processing fee is charged by your lender.
Prepayment charges and penalties applicable – It’s worth checking if the lender charges for prepayment of loans. Since the prepayment charges attract a hefty charge, watch out for those companies that have a minimal prepayment charge.
Collateral Required – Even if personal loans are unsecured, that doesn’t necessarily require any collateral. Any kind of asset pledged secures loans and attracts a discount in interest rate. When you further apply for secured loans, you don’t need to consider the CIBIL Score, since you have pledged your assets.
Loan Tenure – Generally the tenure of loan repayment varies between 2 years and 5 years. When you have a longer loan repayment period, you need to pay lower amounts, but at the end of the day, you pay more in lieu of interest payable. So, it’s a good idea to repay the loan as early as possible. This will save thousands of dollars owing to the interest payments.
Loan Amount – Every lender offers a different ceiling for loan disbursement. The loan amount varies between $1000 and $100000. So, pick a lender in accordance with your loan amount. When you apply for a personal loan in earnest you need to take a loan of $5000 minimum.
Disbursement Time – There are various lenders that credit the loan amount within one business day while various lenders can take as long as 5 working days. On the purpose of a health emergency, you should apply for personal loans to those lenders that can process the request within 24 hours.
read more : Top 25 Types of Loan in India
7 Best Personal Loan Companies
When you have an excellent CIBIL score, then you can apply for a personal loan to get rid of expensive credit card debt.
Lending Provider #1. Credible
Credible is an excellent platform where you will find various types of loans namely student loan refinancing, personal loans, mortgages, and credit cards.
Let’s take a glance at what rate you will find in this marketplace,
Student Loans – There are multiple lenders you will find for a student loan and student loan refinancing. However, it’s a tuff call to find the best interest rate and terms when you are availing student loans. When you have a student loan and are looking for refinancing student loans at a lower interest rate and alter your payment terms, credible will help you to find the best student loans available.
After the approval, credit the amount in your amount fixed for the old loan and start paying the new loan amount at a much lower interest rate for a longer repayment term. It is mandatory to be 18 years old to apply for a student loan and you can have a minimum $5000 student loan. The loan amount varies between $5000 and $100000. The loan term varies between 2 years and 7 years.
Personal Loans – Any individual who is looking for a loan to repay the credit card debt can avail personal loans. Credible offers personal loan between $1000 and $50000 with APRs as low as 5.9% between the repayment period between 2 years and 8 years. This is quite handy when you want to consolidate credit card debt or a loan that charges a hefty interest.
Lending Provider #2. SoFi
SoFi offers its customers a feeling of a premium club. It allows customers to attend social events and offers an online forum where you can consult about your career and seek financial advice.
This Lender doesn’t count the applicant’s CIBIL Score rather they determine the creditworthiness of the individual by analyzing the cash flow or the savings from the current cash flow. With minimum annual income of $45000 you can avail of a personal loan and the repayment period varies between 2 years and 7 years. The company charges a fixed annual percentage rate as low as 5.99%.
What makes SoFi apart from other lenders is that SoFi allows a borrower to change the payment due date once a year. Apart from that, the company will temporarily suspend your monthly loan repayments when you have lost your job. They can halt monthly repayment for 3 months at once and suspend loan repayment once a month for a total term of 12 months during the total repayment period.
Lending Provider #3. Upgrade
Contrary to other lending providers, Upgrade offers a wide range of products that will suit a larger share of audience who has different credit scores and incomes. The loan amount is between $1000 and $35000 with a 3 year and 5 year repayment period.
When Upgrade receives a loan application, they review the creditability of loan repayment and access the cash flow of the applicant. If you have a monthly cash flow of $800, the chances are higher that the company will approve of your loan application. When you have a credit score of 689 or above and consolidate your existing loans then Upgrade is deemed fit.
The best part?
When you are looking for debt consolidation loans Upgrade offers a discount rate between 1% and 3%.
What makes Upgrade different from other lenders is that Upgrade doesn’t charge any prepayment fee unlike others do. The company credits the loan amount within one business day with a repayment period that varies between 3 years and 5 years. When you repay the loan directly from your bank account, you will get 0.5% discount on the interest rate payable.
Additionally, you can avail loans by adding another person and access the loan amount jointly. You can put a vehicle as collateral which will reduce the interest rate. When you fail to repay the loan amount the lender has the right to seize the collateral. In the case of losing your job, you may qualify for a temporary reduction in monthly payment or stop the payment by making a modification by extending the repayment tenure.
Lending Provider #4. Upstart
When you are looking for debt consolidation to cover medical expenses or home improvement, you will find Upstart the suitable one. It credits the loan amount within one business day after approval. The loan amount is between $1000 and $50000. You can repay the loan for a fixed tenure of either 3 years or 5 years.
After you have applied for a loan they make use of artificial intelligence to watch out your college education, service history, and place of residence to check your creditworthiness. The founders are ex-Google Employees, so they make use of artificial intelligence to gauge the creditworthiness of the borrower.
Unlike other lenders who take a glance at credit reports, debts, income reports, Upstart analyzes the earning potential of the borrower. Even though you haven’t any credit history, you will get an easy loan if you have gross earnings of $12000. Additionally, you can alter and modify the payment dates.
Lending Provider #5. Earnest
A credit score of 680, a stable source of income, makes you eligible to get a loan from Earnest. When you can manage finances up and coming, the chances are higher that your application will be approved. The loan amount varies between $5000 and $50000 in the case of a student loan. The repayment period can be between 5 years and 20 years.
Earnest doesn’t make a huge emphasis on credit score. They instead review the savings, education, and the borrower’s current income to offer the lowest possible rate of interest on the loan. To avail the loans you must be a US citizen or have a green card and must have attained 18 years of age.
The best part?
Earnest charges neither on prepayment nor late fees.
You can avail Earnest personal loans on being a resident of the United States except Delaware, Kentucky, Nevada, and Rhode Island.
Lending Provider #6. Best Egg
If you want to consolidate your current debts or to cover larger expenses namely home improvement or fund Christmas celebrations, then Best Egg is one of the best lending solutions. It allows you to avail a loan between $2000 and $35000. The repayment terms vary between 3 years and 5 years.
When you have a FICO Score of 700 and have a minimum cash flow of $100000 then you can get personal loans at as low as 5.99%. You will get a loan within a few minutes after you have submitted a loan application. You will get your loan amount within a business day once your loan gets approved.
Lending Provider #7. LendingPoint
Even though you have a credit score as low as 585, the chances are higher that you will still qualify for a loan. LendingPoint analyzes the income, service record, and creditworthiness to gauge the risk of making a default by the borrower. If the current credit card bills toll a high rate, then this is the golden opportunity to debt-free and skyrocket your credit score.
You can avail a maximum of $25000 with a 12-month and 24 month loan repayment period. When you have an annual cash flow of $35000 then you can avail the loan.
The best part?
You can opt payment due date and schedule your payments biweekly or monthly. You can avail a delay of payment for 14 days from the due date without a fee.
read more : How to Repay Your Home Loan Faster
When you have high-interest debt, such as credit card debt that charges 36% interest a year, it is a good idea to get a debt consolidation loan and repay the debt card debt. If you have a clean and clear credit history, have stable earnings each month, then you should avail personal loans, as the interest rates vary between 9.35% and 9.85%. In this way, you can save a thousand dollars by getting rid of credit card debt.