Offering you better products, services and deals suited to your Personal Loan needs
Mawazna.com provides an impartial comparison service matching with your all personal loan needs. The service is 100% free for consumers. We aim to help you by providing a wide range of personal loan offers along with comprehensive information that can help you to choose the best product of your choice. You can contact us and we can work on your behalf to arrange a best personal loan offer for you that will save your time and money.
If you decide that a personal loan is for you then it will make it possible to purchase what you need quickly. This could be an emergency repair to your home or paying for a new car. Whatever it may be, you can be sure that a personal loan will help you to cover the cost. There is a lot of information available that explains all you need to know about a personal loan, so spend time getting to know more about this product.
Why You Should Compare Personal Loans
There are many different personal loan products available which make it important to find one that suits your circumstances and your budget.
By using Mawazna.com, you can find information on a wide range of personal loan products along with the repayment costs, interest rates and anything else that may be associated with the loan. It is simple to compare loans and this ensures that you get the very best products.
Applying for a Personal Loan
There are many reasons why you might need to take out a personal loan. When the time comes to apply for a loan, you will need to meet specific criteria in order to have your loan request accepted.
Personal loans are an ideal option for many but they have to used responsibly in order to avoid finding yourself in debt or impacting your credit rating.
Why a Personal Loan Instead of a Credit Card?
In many cases, a Personal Loan is a cheaper way of borrowing money when compared to a credit card. This is particularly the case if you need to borrow a large amount of money over a fixed period of time.
However, it is important to remember that regardless of how low the APR is, the loan is still an expensive way to obtain a large amount of money while the risks are there if you fail to meet the terms agreed.
It is important that you consider whether you definitely need to apply for a loan and you should consider all other options before doing so.
When you take out a loan, you will be well aware that you have agreed to pay it off over a fixed period of time in case of a Fixed rate loan. The important thing to remember is that the loan itself is well with your budget and affordability levels because failing to make payments could result in repossession, charges or even imprisonment. However, in contrast to this, what would happen if you want to pay more each month than the agreed amount? In general, it is possible to make overpayments. Many banks allow overpayments because it enables them to recover the money quicker and it will mean that you end up paying less interest. Despite this, there are some banks and lenders that will not allow you to make overpayments or they will simply charge you for doing so. Therefore, it is vital that you check the small print before making overpayments to ensure that you are not penalised in any way.
You can compare personal loans offered by multiple banks in just 3 steps at Mawazna.com. By furnishing the required information, you will be given with a list of loan providers, loan offers along with comprehensive information including rates. So that you can compare and choose the best offered personal loan for yourself.
Step 1 - Visit personal loan page and press Compare Now button. Tell us your personal loan requirements, this includes the following data
- Select the city in which you reside and want to avail loan there in
- Then choose the loan purpose
- Now opt the amount you want to borrow in the realm of Personal Loan along with loan period
- Provide your source of income by choosing from the available options, including salaried class, self-employed professional and businessman
- Now provide your monthly income
Step 2 - Once you provide the above-mentioned data, it will direct you to see the comparison table with all the personal loans being offered by different banks. You can review all the details including through more info link. You can also compare various personal loan offers through side by side comparison options.
Step 3 - Select and apply for the best suitable personal loan of your choice directly with the bank.
What is a Personal Loan
A Personal loan is a handy financial solution to your financial needs. It can help you to bridge your financial needs through any financial institution Normally personal loans are used for home improvement, child education fee, wedding expenses, debt consolidation, buying household items, going on vacation, buying another car, purchasing property or businesses. Personal loan is the most suitable mode of financing as it gives you a loan for 1-5 years of period while on the other hand, mortgage takes more than 5 years.
Key Points to Remember Before Applying for a Personal Loan
Before applying for a personal loan, you should be careful enough regarding few points. So that when you apply for a personal loan your personal loan application won’t face rejection at any point of frame.
1- Always plan your budget. It will give you a fair idea of the amount you spent on the expense and the resources available to you. By doing this, you will be able to know the actual amount you will be needing for the project/purpose.
2- Before applying for the personal loan, do check your credit report. Your credit report is the key to your loan approval. If you maintain a good credit history with the banks in repayments, there won’t be any hurdles subject to the fulfilment of other conditions. But if you maintain a poor credit history in repayment, there is a less likely chance of your loan approval, except you will be needing a credible guarantor.
3- Know your interest rate/cost of using money. Either you are borrowing money on fixed interest rate or on revolving interest rate. Added, depending upon the interest rate how much total amount you will be paying on the loan.
4- Do the complete market survey regarding providers of personal loans and compare their rate. After that choose the one which is most suitable to you.
5- Carefully monitor all the hidden and visible charges.
Eligibility Criteria for Personal Loan
Eligibility criteria to apply for a personal loan is as follows:
1- Any salaried individual working in a private/government institution
2- The individual has the loan repayment capacity, this can be seen from the salary slip and the number of years you have been working currently.
3- A good credit history report
4- The applicant should not have availed any other loan previously. Even if they have availed the loan they must have the repayment capacity which can be calculated by carefully analyzing their assets and its market value.
Documents Required to Avail Personal Loan
Following list of documents are required to avail for a personal loan:
1- Copy of salary slip/Income proof
2- Copy of a CNIC
3- Employer ID card/Letter from employer
4- Electricity bill
Variable Interest Rate
Variable interest rate is the one which changes with time. Variable interest rate is dependent upon bench mark rate or index rate which is also called KIBOR rate in Pakistan. Besides this, variable interest rate also changes your installment amount subject to the varying rate.
Fixed Interest Rate
Fixed interest rate is the type of interest rate which does not change with time and remains fixed during the whole term of a loan. It helps the borrower to predict the accurate payment of the loan installments and the toal payback amount. It gives an advantage of a same payment irrespective of the KIBOR rate fluctuation.
Secured loan is the type of loan in which the borrower pledges the asset/collateral against the loan. It gives a bank leverage that in the event of default, the bank will sale the asset and recover its amount.
Unsecured loan is also known as clean financing. In this type of loan, the bank finance the customer without any collateral or pledged asset. It is a risky loan, which banks normally give it to their credible clients or by offering high rates and for a new client they required a thorough investigation and a KYC (know your Customer) report from SBP.
Annual Percentage Rate
Annual Percentage Rate (APR) is the rate charged on borrowing of money either on loan or on credit card by the Banks. APR is charged on your debt balance amount only. On credit card you can avoid paying interest rate on the purchases by paying your monthly balance in full.
Collateral security is also known as personal asset. It is used to pledge against the loan as a guarantee of repayment. Your asset will be at the risk of liquidation in the event of non-repayment or defaulter.
Debt consolidation is a form of a debt refinancing. In debt consolidation, a personal loan is taken to pay off the other outstanding debts as you can get a better offer to payback your all loans which ultimately simplify your financial burden and cost savings.
Credit history means a track record of your all payments made in the realm of credit card, loans or overpayments. Credit history illustrates a customer's risk profile to support any loans being requested. In Pakistan credit history is also name as Electronic Credit Information Bureau (ECIB), which is maintained with the State Bank of Pakistan (SBP). The higher a credit score a customer have, the better.
Stamp duty is the tax imposed on the legal documents during processing.
A Defaulter represents a customer who fails to payback any scheduled payment. In the event of a customer being categorized as defaulter, serious consequences have to be faced by the Borrower. Besides this, it also negatively affects your credit history and impact you chances to get loans in future.