6 Rules to Follow When Taking a Personal Loan

If you are planning to buy a new bike or car or want to pay for your medical bills or your education, applying for a personal loan is the best option. Personal loan rescues us from any situation easily. If you are in search of a lender that provides a personal loan in India, then there are literally many lenders available in the market, and you have to research to find the best lender.

With the advent of technology, it has now become easy to avail a loan online using the simple loan application form of the lender. You may not have to visit the lender’s physical location to submit your documents. You can upload them online and complete your KYC to get approved for a personal loan instantly. But there are certain rules that should be considered before getting a personal loan.

Rules to Follow When Taking a Personal Loan

1. Say no to advance EMIs: Some lenders will ask you to pay first and second EMIs in advance while taking a loan. This may lead you to pay more interest. So, always avoid paying EMIs in advance and choose a personal loan lender who only asks you to pay EMIs regularly.

2. Don’t apply for a loan with many lenders: Never apply for a loan with multiple lenders. Every time you enquire about a loan, the lender studies your profile. If you register in 5 different apps, the lenders will think you are credit hungry and you may face a rejection straight away.

3. Go for short tenure: Choosing a longer tenure might be tempting because you will pay lower EMIs. But you will end up paying more without even knowing. So, short tenures are better even if the EMI is slightly higher.

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4. Check for other charges: Most lenders levy hidden charges. Only a few lenders charge less processing fee and other charges. Therefore, before applying for a loan, read the fine print carefully to avoid disappointment at a later time.

5. Don’t take a personal loan for investment: Personal loan interest rate is higher compared to most of the loans. Taking out a personal loan to invest is ideally not the best choice because the purpose of investment is to generate more money but not to pay interest.

6. Repay on time: It’s a known fact that timely payments can improve your credit score and you will have access to loans in the future. Late repayments on your personal loan will cost you huge penalties, which affects your CIBIL score to a great extent.Follow these rules when taking a personal loan so that you will stay prepared and avoid unnecessary hassle. If you are looking for suggestions on the lender to choose, choose Flex Salary. It is one of the best lenders, which can offer a personal loan in India within a few hours. It’s a personal loan with no fixed EMI – If you don’t have money to pay this month’s EMI, you can make a minimum payment. You can continue making minimum payments till you are financially stable, which is a huge benefit when you apply for a loan with Flex Salary.

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