Rules to keep in mind while taking a personal loan

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Rules to keep in mind while taking a personal loan

A personal loan may come with riders and a higher rate of interest, but when you have absolutely no option, it emerges as a savior! But when you’re signing up for a personal loan, you got to keep these rules in mind – read this post to know all about the rules:

Choose the right bank/financial institution
Just because a bank is offering you a personal loan at a lower interest rate, don’t jump in for it! Have your research in place and make sure you read all the terms and conditions of the loan before actually zeroing down on the lender and signing up for the personal loan. You may even consider a bank in which you have an account for years together, but don’t let this stop you from looking out for options – there may be better deals out there which you surely don’t want to miss out on.

Financing

Do up the calculations
You don’t need to be a financial genius to be able to do the calculations of the interest your loan will accumulate. If you Google, there are a lot of posts and videos which show you how to calculate the rate of interest and the EMI’s you would be bound to pay. Make sure the EMI’s fit in your budget, without bringing in any strain on your finances -so that you can clear off your dues effortlessly.

Don’t fall for extra perks
There’s nothing called as 0% EMI – it’s just a marketing gimmick to trick all the laymen who don’t understand the financial aspects of loans and EMI calculations. These schemes are even banned, but some traders use this to attract unaware customers.

Beware of riders
Most of the loans come with terms and conditions in the fine print. And we, lay people, detest reading the fine print! But don’t make this mistake – read every detail minutely before you fill up your details and sign the dotted line. You, of course, don’t want to regret later, when your lenders state out some extra charges you weren’t aware of while signing up for the loan. It’s always best to read and ask about all these additional charges well in advance.

Keep it easy
Don’t go about hunting the best lender – shortlist a few and then zero down on the best one. By doing this, you are keeping your approach sorted and not messing your brain with too many choices and options!

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