If you need money and are thinking of taking a personal loan, then be careful. There are many fake apps and people in the market who can trap you with costly loans. In this article, we will tell you what things you should keep in mind before taking a loan.
Many people go for instant personal loan apps because they offer fast money without paperwork. But these loans come with very high interest, sometimes 40% to 50% per year. It is better to take a loan from a bank or an RBI-approved company. These are safer and have lower interest.
Take a loan only if needed
People often take out more loan than they need. At first, it feels fine, but later when income goes down, it becomes hard to repay. So, take a loan only for the amount you really need.
Always pay on time
Many people forget the payment date. This causes penalties and sometimes increases the interest. Always remember to pay your EMI on time.
There are many loan options in the market. Choose the one with the lowest interest rate. Also, try to take a short-term loan so you pay less interest.
If you don’t repay your loan on time, your CIBIL score will go down. This will make it hard to get another loan in the future. So, always pay your loan on time to keep your credit score good.