Personal Loan Tips: Follow these 9 smart steps before taking a loan

Personal loan can prove to be very helpful to complete many other tasks including emergency, wedding, renovation of home or dream vacation. Its biggest feature is that there is no need to pledge anything for this. But it is very important to understand some important things before taking a loan, otherwise it can be a problem later.

You can also get an instant personal loan of up to Rs 50 lakh without any paperwork through moneycontrol. There is a complete digital process here and there is no high processing fee. Here the interest rate starts from 10.5% per year and the money is transferred directly to your bank account.

Know here 9 important tips, which is very important for you to know before taking a personal loan:

It is easy to take a loan, but not repay. This is a long-term commitment, in which EMI has to be repaid every month. So before taking a loan, think whether you can manage its EMI comfortably in the current financial situation? Otherwise, your budget can get messed up and the credit score can also be affected.

Nowadays lenders are offering a lot of flexible options, but every offer is good, it is not necessary. Read all the points carefully like interest rate, processing fees, repayment terms and hidden charges. Understand the total cost of every loan and the flaxality found in it.

There is no need to pledge anything in a personal loan, so the interest rate may be high. Even a small difference in interest rate can have a big impact on the total cost of the loan. People with good credit scores and financial profiles can get low rates. On Moneycontrol, you can take an instant loan of up to Rs 50 lakh from 8 lenders, in which the rate starts from 10.5% per year and there is no hidden fee.

Before taking the loan, you must see whether your income and credit score is according to the conditions of the lender or not. The higher the income and credit score, the greater the chances of getting a loan will increase and the conditions can also be better.

The score above 750 is considered ‘Excellent’ and it is likely to get the best offers. It can be difficult to get a loan when the score is low. So check your score before applying the loan and improve it if needed.

While taking a loan, not only the interest rate, also pay attention to things like processing fees, pre-payment charge, late payment penalty. All these together can increase your EMI and overall expenses.

If you want to repay the loan quickly, then it is important to know whether the lender lets you do this without extra charge or not. Many times, there is a penalty even after repaying the loan.

Once you take a loan, EMI will have to be given on time every month. Late payment will not only provide penalty, but will also affect the score. Regular payment makes credit history better.

The tall tenure may reduce EMI, but it has to give more interest. If you can afford a little more EMI, then keep a small tenure. This will end the loan quickly and will also save money.

Get an instant loan of up to ₹ 50 lakh

conclusion

It is easy to take a personal loan and you can manage it well only with the right information and correct planning. These 9 tips will help you take a loan without any hassle and repay it on time.

How to take Instant Personal Loan on Moneycontrol

Summary

Whether to keep the credit score good or choose a loan with the lowest interest rate. These 9 tips can prove to be helpful in getting a loan easily and managing it properly.

Disclaimer

This fraction/article is written by an external partner and does not reflect the work of the editorial team of Moneycontrol. This may include references to products and services offered by Moneycontrol.