It is important to restrict the personal loan amount as these loans come with high interest rate. “Personal loans also have shorter repayment period and hence the EMI on personal loans may take a reasonable share of your monthly income as well,” says Harshad Chetanwala, co-founder, MyWealthGrowth.com, an online investment and research platform for mutual funds. Also check the repayment and part-payment related clauses to ensure that you have some flexibility in repaying or closing the loan, he adds. Take the loan only if you can service it regularly.