A personal loan comes in handy when we suddenly need money. But sometimes we make mistakes in our haste. In such a situation, we will tell you how you can stay safe while taking a personal loan.
Here we are talking about some points, which you can keep in mind while taking a personal loan. Let us know about it in detail.
Keep in mind the interest rate
As we know that personal loan is the most unsecured loan, hence the bank gives the highest interest on these loans. Their interest rates can start from 11% and go up to 20%.
In such a situation, you have to keep in mind that while taking a personal loan, you will always have to keep in mind the lowest interest rate.
Let us tell you that just 1 or 2 percent can make a huge difference in the cost of your loan.
Be careful about extra charges and fees
Let us tell you that along with high interest, banks sometimes add many charges to these loans. In such a situation, you will have to take care of these also.
Let us tell you that this charge may include a processing fee, which ranges between 1-3 percent of the loan.
However, sometimes banks have offers where they get discounts on their processing fees.
Apart from this, even if you close the loan early, you may have to pay a penalty for pre-close. This can be calculated according to your outstanding amount.
Keep in mind your ability to repay the loan
While taking a personal loan, it is important to keep in mind how much loan you are able to repay.
Accordingly, you will have to make your EMI, for this, you can use an EMI calculator.
For this you have to enter the details like loan amount, interest rate, and tenure and the calculator will show the EMI. You have to keep in mind that your EMI should be such that you can repay it without putting pressure on your income.
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