This time It has become easiest to take a personal loan. If you are a salaried employee, then you get pre -appointed personal loan offers from the bank. In such a situation, you can take a personal loan on mobile with one click and immediate money will come to your account. Nowadays, despite having a low credit score, banks offer personal loans. In such a situation, it has become easy for the people to take this loan and they are taking personal loans indiscriminately. But is this right? Personal loan is considered to be the highest interest rate loan, so you should take this only when you have no other option. Today we will tell you about some such mistakes that often do percentile loan customers and then have to regret later.
Take a loan without comparing the offers of banks
Many times people accepted the offer that is received without thinking. The customer should compare various banks and personal loan offers of NBFCs before taking a personal loan. Many banks bring attractive offers for customers. These include complete exemption or slight discount in processing fees, low interest rate, exemption from foreclosure fees, gift vouchers etc. Take a personal loan from where you are seeing the most benefit.
Abuse of personal loan amount
Due to getting easily found, people do not appreciate the amount of personal loan and they start misusing this money. Personal loan amount should never be used in works like share trading, fantasy sports games, betting, gambling etc. The possibility of losing money in these works is quite high. Also, you should also avoid making unnecessary purchases from the amount of personal loan. It is not right to buy expensive gadgets and mobile phones even if there is no need for personal people. Some people take personal loans to go on trip. Actually, this is a task for which you should save and plan in advance.
Take a loan of excess money
Banks or NBFCs offer you personal loans according to your capacity. This does not mean that you take excessive loan. Take a personal loan as much as you need, no matter how much you have received a loan offer.
EMI default
When you have taken a loan, you make sure that on the fixed date there are so much money in your account, that the EMI is cut. You should make your budget accordingly. Personal loan EMI default causes penalty on you. This also reduces your credit score. If you delay more than 90 days in paying EMI, you will be declared a defaulter. This default status will be visible for years in your credit store.
Extending a duration of loan
Sometimes customers restrain their personal loan representations. In this, the loan duration is extended, which reduces the amount of EMI. This keeps your loan lasting for a long time. Its disadvantage is that you will have to pay much more amount as interest. Customers should choose this option only when you are struggling with financial crisis.
Taking several personal loans together
Some people take personal loans for small needs. In such a situation, they have many personal loans and they have to pay a large amount as EMI. This can disturb your budget. If possible, try to eliminate the existing loan before taking a new loan.
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