Personal loans, Nov. 11 -- Before taking a personal loan, borrowers should consider an array of factors. These factors include the reputation of the lender, processing fee, total time taken for approval, the person's existing rapport with the bank or NBFC and the reviews given by borrowers in the public domain.

However, what matters (or at least should matter) the most for any borrower is the rate of interest levied by the lender. Being unsecured, a personal loan typically attracts a higher rate of interest. Additionally, the interest rate on a personal loan usually remains the same during the entire tenure.

Therefore, a slight difference in the rate of interest can lead to a significant difference in the overall cost incurred by the bo...