8 Things To Consider Before Taking A Personal Loan

Sutirtha Sanyal

1. Fees & Charges:

Know the processing fees and other charges for foreclosure, cancellation, collection, EMIs, etc.


2. Offers and Gimmicks:

Don’t take top-up loans offered at low-interest rates if you don’t need them, as they could become a liability.


3. Repayment Ability:

Take what you can repay, as payment delays will attract penalties, and it can lead to a debt trap.

Repayment Ability

4. Compare Lenders:

Compare the lenders’ fees, charges, facilities, etc., and weigh your options accordingly.


5. Interest Rate:

Choose a lender offering the lowest interest rate, as it will be easier for you to repay the loan.

Interest Rate

6.Read Details:

Read the fine print as the devil lies in details; neglecting it may lead to a major crisis.

Read Details Carefully

7. Timely Payment:

Don’t miss EMIs, or else you will be asked to pay penalties that will reduce your credit score.

Timely Payment

8. Credit Score:

You will need an average credit score of at least 550-649, which indicates creditworthiness.

Compiled by Himani Verma
Credit Score