Maybe you need a personal loan, due to which you are reading this article. It may be your wedding or maybe you are traveling somewhere to treat your medical emergency. In some other cases, your child might be planning to study further. Whatever the reason, a personal loan is the easiest way to raise fund for your present and future plans.

A personal loan is also called unsecured loan where you do not need to offer security to the lender. Before filling a loan application, you should know how much loan amount you need and for what tenure. Following steps would help you to choose your best personal loan to fulfill your financial needs.

Bridge EMI With Your Income

First thing to ensure before signing for a personal loan application is to check whether you are able to pay the EMI timely or not. You have to make a bridge or equilibrium of your monthly income with EMI. You can check your maximum eligibility with the bank and can choose a loan amount which could by paid without any financial load. A feasible EMI of the loan should not be more than 10-15% of your monthly income. Sweden’s ICA Bank provides personal loan with no collateral and repayment period of 3 to 15 years. You can set your repayment period according to your monthly income.

Check Your Credit Score

A credit score is a way of analyzing creditworthiness of an individual. It ranges between 300 to 900. If your credit score is near to 900, the banks will be more comfortable in offering you a loan. The credit score should not be less than 750 because low credit score affects your chances of successfully getting a personal loan with a low interest rate. Alternatively, you are still eligible for the personal loan if your credit score is low but you will get high interest rate on the given loan amount.

Look Either For Banks Or Trustworthy Lender

If you already have an old account in a bank, then it is good to approach the bank because the bank is aware of your financial credibility and would provide you flexible loan after you meet the eligibility criteria. Alternatively, if you are planning to look for lenders, then it is necessary to verify credibility first and then go for loan costs, terms, tenure and interest rate.