Do you think you may need a five lakh loan? If you do, then you are probably contemplating the associated costs. First and foremost, you need to comprehend your EMI or month-to-month interest rate. This tutorial has been written so that you are able to clearly view the associated costs and comprehend them. We shall resort to simple language in order to discuss your interest rates. We shall also discuss how an instant cash lender charging 5 lakh loan interest per month may aid you.

Understanding the Monthly Interest Rate

Interest is the charge that is paid to the bank for the use of funds. For example, for a five lakh loan, the interest rate may vary based on the source from which the loan is acquired. The normal interest rates of the banks range from 10% to 24%. However, some apps provide interest rates of no more than 16%.

The word “reducing balance” is also important here. It actually means you only pay the interest rate on the money you owe them and not all of it. The more of the money you pay back, the lower the interest rate each month.

Why Choose an Instant Money Lender?

Of course, most people are searching for an instant money lender with an interest rate of 5 lakhs per month because sometimes they need the money immediately. This is because banks take many days to verify your documents. That is not the case with Fibe, the online lender.

They make for an ideal option in case of an emergency. One can apply for this option from one’s mobile phone and acquire the money right into one’s account in the bank. They don’t even ask for any security, collateral, or otherwise.

Factors Which May Affect Your Interest Rate 

Not all borrowers are offered the same rate of interest. Some criteria must be evaluated before a rate is offered:

• Your Salary: This indicates that if you have a high-paying job, it will be easier for you to repay a loan.
• Credit Score: If you are someone who has paid all your previous bills on time, this score will be high, and you can get a lower rate.
• Your City: At times, norms may be different when people live in big metropolitan cities.
• Employer Type: Having a job with a large, stable company is one way to get a better deal.

Tips Before You Apply

Before you enter into any agreement, make sure that you use the online EMI calculator. This will help you calculate exactly what you will pay every month. It will help you plan accordingly, and you will not go into any financial commitments without planning your budget. Additionally, there are other charges that you need to pay, which are known as “processing fees.” This is 2% of the loan amount.

Borrowing money is not an easy thing. Ensure that you are able to afford payments every month before you approach a loan. By choosing the right lender and timing wisely, you are able to manage your finances wisely.