The offer on personal loans is very diverse . What are the aspects to be assessed in order to identify the personal loan that is better or better suited to one’s own needs? Let’s find out what parameters are not to be overlooked before choosing with the help of this guide.
What to keep in mind for a truly effective comparison?
The parameters to consider for a truly effective comparison between personal loans are different. They are divided into two main types: the specific characteristics of the personal loan and the methods of disbursement and collection .
The characteristics of the personal loan
The first aspect to keep in mind when comparing personal loans is the interest rate applied. Take care to evaluate both types of interest rate, ie TAN and APR , although the most significant of the two to assess the actual cost of a loan is the second. Even if the differences between one loan and another on the interest rate may seem derisory, the actual calculation of interest (to know how to independently calculate the interest calculation refer to the specific guide), can be of great help for consider the best loan for your needs.
Another aspect connected to the previous one is the amount of the monthly payment . The installment is calculated based on a formula that considers the amount financed and the repayment period ; however, identifying a maximum sustainable installment in advance is a winning strategy for comparing personal loans. In this regard, it is advisable to stay below the maximum sustainable amount for your financial situation, to prevent any unexpected events compromising the possibility of meeting the installment.
An additional parameter to consider when comparing personal loans concerns the costs to be incurred for the disbursement and repayment of the loan itself. For this purpose, the initial expenses to be paid for the start of the loan, the costs of preliminary investigation and the eventual periodic expenses , which may concern for example the cost applied for the collection of the monthly payment, must therefore be considered. Often these aspects are not immediately communicated to the loan proposal, but especially for low- cost loans could have a not inconsiderable impact on the final cost of the personal loan.
The methods of evaluation and provision of the loan
Let’s move on to a second type of aspects to be assessed for the comparison between personal loans, that is the aspects related to the methods of evaluation and provision of the practice.
With regard to disbursement, the possibility of fully online lending should be considered in the comparison; in this case, those who sign the personal loan have the possibility to carry out all online transactions, with a considerable saving in terms of time. In addition, this mode allows you to request and send documentation at any time of the day, regardless of the work schedule of those who request and who provides the loan.
A second aspect to evaluate when comparing loans is the time needed for evaluation and issuing of the practice. Usually times are advertised by the lender, but please note that any problems in receiving documents or incomplete data could prolong the evaluation of the practice and the provision of the loan itself.
A last aspect to consider when comparing personal loans is the method of disbursement and repayment of the loan. Please note that in most cases the disbursement and return are made via a bank account . Those who have different needs must therefore carefully evaluate that these methods are not the only ones provided for the provision of the personal loan.
As can be seen from the above, the aspects to keep in mind to compare the various personal loans are varied. For this purpose it may be useful to use an online personal loan comparator , a tool that in a few seconds is able to compare the products offered by different subjects, without the need to enter the required data on the respective websites several times.
In addition to the comparison of personal loan rates , this type of tool allows you to view at a glance the main characteristics of the loans, such as initial expenses and the maximum amounts that can be financed.Before choosing between personal loans, we always recommend carefully evaluate all the aspects that make up the loan, considering in particular the parameters described in this guide.