A Personal Loan is an unsecured loan which you take for different purposes like a wedding, vacation, hospital charges, etc. If you go bankrupt, certain assets that are pledged will be sold on auction by the lender, who is the ban usually.
Before taking a loan of any kind, make sure you have a good credit score to improve your chances of getting the loan. If your credit score is low, then you have more chances of getting rejected when you apply for a loan. Moneymindz, India’s First Online Financial Advisor.
1. Select your lender carefully
Banks and Financial Institutions aren’t the only ones who offer loans. Many moneylenders operate on their own and offer loans often at different rates with different Terms and Conditions. Every lender offers loans claiming them to be interest-free, low rates, etc. Don’t fall for the first such thing you come across. Research the market thoroughly, you may find something more suitable. See what suits you best.
2. Calculate interest rates yourself
The flat rates of interest are meant to lure customers and potential borrowers. That’s why you should never fall for them in the first place. The flat rate misleads you, as it doesn’t take a reduction in the balance in every EMI(Equated Monthly Installment) you might pay into account. Therefore, your best bet is to calculate interest rates yourself. Bear in mind that the interest must be calculated on reducing balance if you are repaying a loan with EMIs. Free Financial and Investment Assistance, MoneyMindz.
3. Dismiss 0% EMI schemes and advance EMIs
The 0% EMI scheme is a cunning trick used by lenders in partnership with distributors of consumer durables and lifestyle products. Despite attempts by the RBI to curb such menaces, some lenders continue using these offers. Advance EMI’s are yet another trick used to make borrowers pay more than contracted rates. Beware of such cheats and don’t trust loans they give.
4. Keep an eye on other charges
Though personal loans usually come with processing fees, lenders add other fees and charges so as to make you pay their commission too. So always check all the charges before applying for a loan. If you don’t want those miscellaneous charges, ditch that lender and go for another. This is better than losing your money for such people. Moneymindz, India’s Best Financial Advisor
5. Too many cooks spoil the broth
Too much is too bad. Don’t go to too many lenders. You could be mistaken as a credit hungry person. You could become vulnerable to cheating also. Keep your search in moderation and don’t spoil your credit score.
For more information on the Personal loan, visit www.moneymindz.com or give a missed call to 022-62116588.