Personal Loan

1. Check the interest rates before you apply for personal loan. Being an unsecured loan, the interest rates tend to be a bit higher than a secured loan
2. Check charges such as processing fees, pre-payment charges, etc., as these can add up to quite a bit
3. Check if the repayment conditions are flexible and if you would have to pay a penalty in case of part pre-payment or foreclosure of the loan
4. Check the time taken by the bank for approval and disbursal of the loan, and whether you will receive the funds in time to meet your requirements.
5. Check out the exact EMI amount using a personal loan EMI loan calculator
6. Check eligibility criteria such as minimum income limit, and documents required to ensure quick approval and sanction of your loan
7. Check if you are pre-approved for a personal loan for instant disbursal

1. Don’t let your loan EMI exceed 40% of your net take-home pay. This will prevent any undue financial burden on your monthly budget
2. Don’t avail of a personal loan at a higher interest rate if your credit score is too low. This will put pressure on your finances and make it tough for you to repay the loan
3. Don’t delay your repayment or default on your loan because it is an unsecured loan. This will impact your credit history negatively and pull down your credit score, which will make it difficult for you to avail of any credit in future