Personal loans are one of the best solutions for short-term financial crunches or emergencies. With its digital application methods, fast approval, quick disbursement, and flexible tenures, it is understandable why many people resort to it. You can apply for personal loan here: https://www.fullertonindia.com/personal-loan.aspx
With that being said, there are certain things people do not tell you when taking a personal loan in India. These include:
- Since personal loans are unsecured, their interest rates are comparatively higher. Therefore, you must only take a personal loan if it is necessary.
- There are several
types of loans in the market, and a lot of them have additional charges such as prepayment penalties. Borrowers tend to overlook this as it is usually mentioned in the fine print. It is important to consider these charges as they can amount to quite a lot of money.
- Although many lenders give the option of lengthy repayment tenures, it is best not to fall into that trap if you can pay the loan off in a shorter period. It is best to avoid this, so you do not end up paying more than necessary on interests.
- Having a good CIBIL score is essential as it allows you to negotiate the interest rate with the lender.
While there are many benefits of personal loans, you must not overlook other factors. It is helpful to use an EMI calculator as a starting point in the process. It helps you cross the very first step of understanding where you stand financially and if you need a personal loan or not.
Additional Read: Get a Personal Loan in 4 Steps
