In times of inflation, it has become difficult to manage expenses. Apart from this, businesses have also been affected in the Corona epidemic. In such a situation, a personal loan is a good option to meet your needs. If you are going to take your first personal loan then there are some important things that you should keep in mind.
Check if you are eligible?
The eligibility criteria are different for each lender and differ for the salaried or self-employed individual. Before applying for the loan, you need to check whether you meet the eligibility criteria set by the lenders. Generally, people in the age group of 21 to 65 years can avail a personal loan. The minimum net monthly income required to avail the loan is between Rs 15,000 to Rs 30,000 per month.
Take a loan as much as you are comfortable with
Banks and other lending institutions are always ready to offer personal loans to their customers, but you should only apply for the loan amount that you require and which is easy to repay.
Compare various personal loans available in the market
Before availing the personal loan facility, you should compare the different personal loan products available in the market based on the interest rate, processing fee, penalty charges like prepayment charges, pre-closure charges etc.
settle for the lowest interest rate
Compared to secured loans, personal loans are usually given at higher interest rates which range between 9-24%. Higher the rate, higher will be your EMI. So, when you go for a personal loan, check the interest rates offered by different lenders.
Choose the Right Lender
The eligibility criteria are quite different when you make a comparison between banks and NBFCs. The captivating eligibility criteria requirements of NBFCs sometimes make it easy to get a personal loan. However, if you see, banks will be seen offering personal loans at low interest rates and low processing fees.
things to note
If you fail to make personal loan repayments on time, it can hurt your credit score and affect your chances of availing money in the future. So, make sure you are able to repay the loan on time.
first published:Jan. 17, 2022, 2:14 p.m.