Outlook Money
With the onset of festive seasons, there is a spike in deals and freebies across various industries. Often lenders offer a range of incentives and discounts on a variety of loans including personal loans. Even with such deals one needs to make sure to make a wise financial decision and not be trapped by offers and freebies.
1. Assess Your Needs- The first thing is to keep in mind your needs. One should make sure that taking a loan is necessary. Taking higher amounts of loans than needed can lead to a financial burden.
It is advisable that before taking a loan, one should evaluate the ability to repay it comfortably. For this one can calculate monthly income and expenses to see how much can be afforded to pay back each month without straining other finances.
Researching multiple lenders and comparing their interest rates, terms, and fees can be useful in getting a loan on the most suitable and favourable terms.
It is important to carefully read the loan agreement and pay attention to the interest rates, repayment schedule, and any hidden fees.
Before applying for a loan, it is necessary to check the credit score. A good credit score can help in getting and negotiating better interest rates and terms.
Compiled by Syed Muskan