5 things you must know before taking personal loan

Taking personal is now becoming very easy. So here are the 5 things you must know before taking personal loan.

5 things you must know before taking personal loan

Personal loan is now getting popular with the young mask as it becoming easier to get from Banks and NBFCs.

While taking a personal loan you must consider several factors before applying it.

Loan Amount

As we all know lesser the amount the easier to repay. So take the loan as you require the most.

According to the experts do not take a personal loans for any unnecessary expenditures like shopping luxury items, Foreign vacation, Higher rate investments Etc.

The loan amount must be under your repayment capacity.

Interested rate

The interest rate is an important factor while taking the personal loan. You can compare various lenders about the interest rates.

Many websites and online portals publish the comparison of interest rates of different lenders.

All costs

Before applying for the personal loan you must consider the different cost associated with it like

• Processing charge
• Verification charges
• Penalty on late EMI or EMI bounce Charges
• Fees on duplicate statements
• GST
• Prepayment or Foreclose charges

Credit Score

A credit score plays an important role in your eligibility for taking the loans.

Also read: 7 best ways how to save money from monthly salary

High credit score makes it easier to take the loan but it does not mean that if you have less score then you will not be eligible. In such a case your income, net asset, the employer could make it easier.

It’s always recommendable to maintain a healthy credit score for any kind of loan.

Choose the lender carefully

Banks and NBFCs always focus on personal loans and tries to send SMS, emails and phone calls. They may offer you various offers.

Some times your bank representative tries to build a relationship with you to motivate you for the personal loan.

Related articles: Personal Loan Fees and Charges

As a smart person, you must understand your requirements and chose the plat that suits you the best.

Don’t fall for the first offer you get on email or via SMS.

Final words

So we hope these 5 things you must know before taking personal loan will make you understand the process better. By following this 5 tips and tricks you can get a better loan.