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Posted on Thursday November 7th, 2019

If you ever find yourself in a financial crisis, you should look for a personal loan as they are great to get you out of it. So if you are in a situation of any medical emergency or you’re falling short for your vacation plans or you require funds to cover a wedding expenses in the family, just get yourself a personal loan and things will work out well. Just make sure yourself that what mistakes you should avoid while taking a personal loan or repaying it.

Do Not Apply Without a Comparison: While applying for a personal loan, chances are you need urgent funds and need a fast disbursal. This doesn’t means you have to skip on comparisons. You should make a checklist on different lenders and their offers in term of Personal Loan Interest Rates loan quantum, tenure, monthly installments and processing fees before you make a final decision. This will help you to secure a best deal.

Not Calculating Your Exact Requirements: You need to decide wisely that how much money you exactly need. If your borrowing decision is based on guesstimation, you could borrow more than you require and should be in debt trap. This means to pay interest rates on loan money you do not need to repay an EMI that’s over your head.

Not looking After Eligibility Criteria: This could turn out a biggest mistake in your loan journey. You should use an eligibility calculator otherwise it leaves you open to the risk of applying more than you need resulting in rejection of loan application. You should also use an EMI calculator to handle your loan repayments with a good amount of foresight.

Not Checking Your Credit Score: Either you are paying your credit card or utility bills on time, it is always advisable to check your score before Applying For Personal Loan. There is always a chance that your latest report has some error pulling your score down. In that case, you should take some steps to boost your score that will help you get higher loan amount or lower interest rates.

Tenures That You Can’t Handle: The short tenures always ensure you to pay less but meant for larger EMIs which will cost a large amount of your salary each month. So always opt for longer tenures to pay smaller EMIs. If you can afford a larger EMI then you should opt for a short tenure.

Not Reading the Terms and Conditions: People usually don’t find the terms and conditions to be an interesting reading material but one must go through it. If you can’t do that, just take help of any financial expert who can explain you the potential pitfalls of it. Go through all the lender’s rules to avoid any unwanted penalties to late payments.
As long as you avoid these above mentioned mistakes, you should enjoy a smooth loan journey. We hope these points have been helpful for you, so good luck and Happy Borrowing!