Outlook Money
With the festive season approaching, the rate of availing personal loans has spiked. But make sure to look out for these 5 factors before applying for a personal loan.
Make sure the necessity of loans and avoid discretionary spending. Only take the required amount, and refrain from unnecessary borrowing just because you’re offered a lower interest.
Assess your ability to repay the amount; calculate monthly income and expenses. Always keep your total debt payment below 30 per cent of your total income.
Research multiple lenders, and compare the interest rates, terms, fees etc. You can also use online comparison tools to analyse the best vendor.
Do not forget to read the fine print of any loan agreement, pay heed to repayment window, hidden fees, collateral etc.
Check your credit score before applying for a loan. A good credit score will help your loan get approved faster.
Compiled by Priyanka Debnath