Here’s a simple question. The last time you bought a car, did you buy the first one you saw at the first dealer you visited? We think not. The same would probably hold true for the high-definition plasma TV or the latest mobile phone or camera you’ve always wanted. In fact, it’s always a tough call when it comes to spending your money.
Choosing a bank to get a personal loan is no easy task either. Especially in these difficult, cash-strapped times, when you know that every penny you fork out in interest is eventually worth its weight in gold. Your task seems even tougher once you realize that in the personal loan market, what you see is not necessarily what you get. With dozens of banks promising “ready cash” at your doorstep, it’s time-consuming, even confusing, to zero in on the best deal.
But perhaps you could try the Internet to get around this problem. Over the last few years, a number of “neutral” websites have sprung up, promising to shrink the time and effort you require to scout for the best deal.
Mint visited four such portals and went through the process of applying for loans or insurance policies to get a sense of how effective they are in getting potential customers what they are looking for.
The results, on balance, were disappointing. Public sector banks, which generally offer the cheapest loans in the market, are not yet an important part of the Internet-based system. Also, the transparency on loan terms generally leaves a lot to be desired.
Apnaloan.com
An eight-year-old portal, it features interest rates on various loans offered by banks.
Main function and USP
Apnaloan.com positions itself as a gateway to deals on offer from different banks, their interest rates, and gives a primer on borrowing. For personal loans, for instance, it covers 29 banks, though some of the rates could be dated.
Mint’s experience
To say the least, the information on the site and the reality is out of sync. For instance, according to the information on the portal, Bank of India offers one of the best deals on personal loans. We tried to use the site to get a loan from BOI. Within 5 minutes of registration, we got a call from the website, asking us to furnish more personal financial information needed to process a loan form. However, by the end of the conversation, the caller informed us that we were not entitled to a loan from BOI. Instead, he said, the information would be passed on to another bank to start the loan process. When we insisted on knowing the interest rate of the new bank chosen by the portal, the caller said he didn’t have it.
The problem
Using the website to shortlist the best deals is tough. The interest rates of different banks are there, but the site doesn’t help you to figure out the current best deal.
Deal4loans.com
The portal “links” a potential customer to sales agents and marketing teams of banks and other financial institutions.
Main function and USP