Never pay advanced EMI.
Special or emergency economic needs can come anytime in life. In such a situation, you need funds immediately. In such a situation, the personal loan is present as a great option in the market. However, it is the most expensive than the rest of the loan. Personal loans have become very easy and simple on the basis of technology in today’s time. But experts say that personal loan should be selected as the last option. Despite this, if you are going to apply to take a personal loan, then you must follow some rules related to it. Come, let’s discuss these things here.
Find the interest rate
The first step in choosing a personal loan is to find out the interest rate. It is right to take a personal loan at the best interest rate. Different banks/financial institutions give different interest rates, according to your loan amount, credit score and period. This is the reason why you must investigate and compare it while choosing a personal loan.
Never pay advanced EMI
Never pay advanced EMI, even if some banks/financial institutions ask you to pay it, because in such cases you may have to pay higher interest rates. You can pay the loan amount (pre-payment) loan amount before the scheduled time. Some banks charge pre-payment fees, but often information is already given.
Keep the duration of the repayment short
You will have to pay more interest due to the long term of the repayment in any loan, yes, EMI will be reduced. But it will cost you expensive in the end. It is prudent to keep as much as the repayment duration as possible, even though EMI should be slightly more. You will have to pay less interest from this.
EMI always repay on time
Always pay the monthly installment of your loan on time. If you do not pay the loan amount on time, your amount will be fined, as well as your credit score will also be affected. This can cause problems when taking the next personal loan or credit card.
Do not contact many banks or borrowers
If you contact many lenders to compare interest rates, it can have negative effects. When you apply to a lot of banks, you can come out as a hungry person of credit, because every time you apply to many lenders, they read your history/profile. Apply only with 1-2 lenders.
There is no other fee hidden
Usually no other fee is imposed on your personal loan other than processing fees, but it is always appropriate to read the terms and conditions well before taking a personal loan to avoid disappointment.
Do not take a loan of money for investment
According to Bajaj Capital, even though small loans come with low interest rates, do not use this money for investment purpose. Money is invested with the idea of working for your money, not to pay interest. Therefore, do not invest the amount of your loan.
Therefore, once you know all these 7 stages to apply for a personal loan, you can protect yourself from any other difficulty and stress while taking a personal loan. Expect trouble free service while applying for personal loans.
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