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Taking a personal loan has become easier than ever before, but with it the risk of wrong decisions has also increased. A little carelessness can increase the EMI burden and shake your financial stability. Therefore, it is very important to avoid some common mistakes before taking a loan, so that the loan becomes a help, not a problem.
New Delhi. Nowadays, personal loans are available within minutes, but the risks associated with it also increase equally rapidly. Many people take such decisions in a hurry to get a loan, the consequences of which have to be suffered for a long time. According to experts, the loan process does not end with approval, rather the real responsibility begins from there. Therefore, some caution and understanding is necessary before applying.
Avoid high interest rates and fake lenders
Fast approval doesn’t always mean a good deal. Many apps and lenders charge very high interest rates, which turns even a small amount into a long burden. Before taking a loan, it is important to compare different options so that you can choose the cheaper and safer option. The danger of choosing the wrong platform increases in the crowd of online apps. Experts advise to always take loan from a bank or a reputed NBFC. If a big lender does not give loan, then look for other options, but do check their reputation and credibility thoroughly.
Be sure to check RBI registration and hidden charges
The most important check is whether the loan giving institution is registered with RBI or not. Platforms that are not registered can put your personal information and money at risk. Many times the customer is attracted by showing low interest rates, but processing fees, late payment charges and other charges make the loan expensive. The total cost of any loan can be understood only when you add up all the charges.
Be sure to read the fine print
Personal loan should be taken only for essential expenses. Taking loans for holidays, gadgets or non-essential purchases can create problems later. While filling the application, many times we tick the conditions without reading them, whereas insurance charges or charges for additional services are hidden in them. Read every line carefully and avoid unwanted services.
