How To Choose A Lender For Personal Loans Based On Interest Rate Structure?

Personal loans have become easily accessible with the emergence of financial technology. Banks and fintech companies have been pushing customers to take personal loans and made the loan sanctioning process simple, seamless and convenient.

While the reason to seek a personal loan could vary, an individual will be looking at the interest rate as the basic criterion of comparison with another lender. Apart from retail banks, there are P2P lenders that also offer personal loans claiming to lend at "low" interest rates.

If you do not wish to be blinded by the attractive selling tactics, it is wise to understand how the aplication of these interest rates work and whether the rate that is being offered to you is economical.

When it comes to personal loans there are two types of rate structures that are associated with the calculation of interest rates on personal loans.

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