Personal Loan: Many types of loans are given by the bank, one of which is personal loan. You do not need any kind of security or collateral for personal loans given by banks or financial companies.
Apart from this, you can use the money taken in the loan as per your need and there is no restriction for this. However, it is better to take this loan only when you really need it very much and you have no other option. One of the main reasons for this is the high interest rate charged on personal loans.
Yes, although a personal loan can meet many needs, the interest charged on it can put a lot of burden on your pocket. It can be an even more expensive deal when you make some mistakes (personal loan mistakes) while taking a personal loan or say that you do not pay attention to certain things.
Today we are going to tell you about 5 such things, ignoring which can prove to be costly for you.
It is important to check CIBIL score
It is important to check CIBIL score before taking a loan. Without a good CIBIL score you do not get a loan and if someone claims to give you a loan, it may be a fraud. Instead of taking a loan from any broker, go to the bank once and get information about personal loan.
Know the interest rate in advance
Often people in a hurry to take a personal loan do not pay attention to how much interest is being charged on it, due to which they get nothing but regret later. Therefore, it is important that you know from the bank or financial company from which you are taking a personal loan how much interest is being paid on the personal loan.
Find out the monthly EMI
Before taking a personal loan, make sure whether you will be able to repay the loan amount or not and whether you will be able to pay the monthly EMI or not. Therefore, first find out the monthly EMI of the personal loan.
Longer tenure, higher repayment
Often we think of repaying the money over a longer period so that we can easily repay small amounts, even if it takes several years. However, such a decision puts a burden on your pocket.
Knowingly or unknowingly you are returning more money. If you repay a smaller amount over a longer period, then on calculating you will yourself know how much amount you have paid with interest.
Hiding information can lead to loan rejection. You want to take a personal loan but when the bank is asking you for some details and you hide it, it can harm you.
If you have taken a loan from somewhere else or the money is stuck due to some reason and the bank comes to know about the existing liabilities, then they can also reject your personal loan.