New Delhi, July 3 -- At the time of applying for a personal loan, borrowers tend to compare the interest rates which lenders charge. While the rate of interest on personal loan is a vital consideration, there are other factors as well which loan applicants could evaluate.

These factors includeprocessing charges, lender's reputation,hidden chargesand the overall experience of procuring a loan.

I.Processing charges: When you apply for a personal loan, the lender levies a portion of loan amount as processing charges. In some cases, processing charges could be as high as 5 percent. Therefore, if a bank charges lower interest but higher processing charges.

II.Lender's reputation: Another key factor that is an important consideration is the ...