Tips for Personal Loan: Personal loan has become a popular means of meeting financial needs in today’s time. Whether it is a medical emergency, education expenses or any other personal need, taking a loan seems to be an easy option. But, due to haste or lack of information, many people become victims of fraud (Online Fraud) while taking a loan. Therefore, it is very important to keep some important things in mind before taking a personal loan, so that you can make a safe and right decision.
Take loans from institutions registered with RBI
If you are unable to get a personal loan from a bank and are thinking of taking a loan from a fintech company, then first make sure whether that institution is registered with the Reserve Bank of India (RBI) or not. If it is not registered with RBI, avoid taking loan from such an institution. Apart from this, also get information about the customer service of that financial institution. Many times problems arise after taking a loan, and if the customer service is not available, it may be difficult to find a solution to your problems.
Don’t fall into the trap of app download numbers
App Downloading Fraud: Many people judge the trustworthiness of an app by looking at the number of downloads on the app store. But it is not necessary that an app with more downloads provides better service. You should always choose a fintech app based on the quality of service. Also, be cautious of fake loan apps. Such apps obtain personal information of users by luring them with instant loans and later harass or blackmail them.
Pay attention to interest rates and loan tenure
Check Interest rate and Loan Tenure: Personal loans usually have higher interest rates as it falls under the category of unsecured loans. This means that you do not need to mortgage any property. This is why banks and financial institutions charge high interest rates. Therefore, you should compare the interest rates of banks and NBFCs. Also keep an eye on additional expenses like loan processing fees. Choose the loan tenure keeping in mind your financial situation.