You\u2019ve decided to take out a <\/strong>personal loan<\/strong><\/a>. Home improvements, a family holiday, a wedding to pay for\u2026 but how to choose the right personal loan for you? With so many options on the market and alluring offers coming at you from all directions, you can easily be drawn into the glitz and glamour of a promo rather than focusing on details that really matter.<\/strong><\/p>\n\n\n\n Ultimately, your individual needs and situation will determine the right personal loan product for you but below are the key criteria to consider. Other than that, just compare, compare, compare! Use our smart comparison tools to identify the perfect product for your needs.<\/p>\n\n\n\n \u2022 Look for the lowest interest rate that you\u2019re eligible for<\/p>\n\n\n\n \u2022 Don\u2019t be fooled by interest rates that look too good to be true \u2013 if they look too good, then they probably aren\u2019t true!<\/p>\n\n\n\n \u2022 Make sure you clarify whether \u2018flat\u2019 or \u2018reducing\u2019 interest rates are being stated and more to the point, make sure you understand the difference. In a nutshell, flat interest rates are normally lower than reducing balance rates and are therefore considered misleading. When it comes to comparing personal loans, the best way to compare their true cost is to convert everything into the reducing interest rate.<\/p>\n\n\n\n \u2022 Check also that a very attractive interest rate on offer is carried for the duration of the loan. Banks may advertise a super low rate that only applies for the first year of the loan. Thereafter, the interest rate significantly goes up<\/p>\n\n\n\n \u2022 There are lots of Islamic finance products out on the market today whereby banks buy the product and sell it to their customer, at an agreed profit after the monthly installments are completed. Customers are not charged interest. Click here for an article that goes into this in more detail (Click to)<\/p>\n\n\n\n \u2022 Whilst some customers may wish to choose Islamic finance products for ethical reasons, as the Islamic financial market has matured, the differences between Islamic and non-Islamic loan products have narrowed considerably so we suggest you compare both directly and simply work out which will benefit your individual needs most \u2022 Unless you can guarantee your job and the financial security that goes with it, then you should consider taking insurance<\/p>\n\n\n\n \u2022 Find out whether your potential loan provider provides insurance. Sometimes the insurance payments can even be added on to the principle loan amount<\/p>\n\n\n\nInterest Rate<\/h4>\n\n\n\n
Islamic or Conventional Finance<\/h4>\n\n\n\n
Insurance<\/p>\n\n\n\nYour Bank or Another<\/h4>\n\n\n\n