Personal Loan Tips: Are you taking a personal loan? Ask yourself these questions first, otherwise, you may face a big problem..

Everyone needs a personal loan at some point or the other. In such a situation, you must ask yourself some questions, so that you do not face any problem later. You have to check whether you want to take a loan from a credit card or a bank. You should also ask this question, in how many days and how do you want to repay the loan? Let's know about these 7 questions.

1- How much money do you need?
Before taking any loan, you should ask yourself how much money you need. If you need very little money, then you should first ask friends and relatives for some money on loan. If you do not get money, then you should take a small loan from a credit card. Taking a big loan from a bank is not wise at such a time.

2- In how much time can you repay the loan?
You have to repay the loan company or bank in monthly installments within 30 days. Most loan providers make EMIs between 6 months to 7 years. The sooner you repay the loan, the less interest you will have to pay, but also keep in mind that if you fall short of money to repay, you can also become a loan defaulter. So before taking a loan, decide based on your income in how many days you will be able to repay the loan.

3- How much interest is being charged?
If you take a loan, you will have to pay interest. In such a situation, you have to see in advance where you are getting a loan at a cheaper rate. This rate is sometimes more or less according to the loan period. So before taking a loan, also consider this thing and take a loan at the right rate for the right period, so that later you do not have to pay more money as interest.

4- Do you have to pay EMI or will you pay the lump sum amount?
If you take a loan, then most lenders start taking EMI from the next month itself. In such a situation, while taking a loan, you have to keep in mind whether you will be able to repay the EMI from the next month itself or not. Also, keep in mind how much EMI you can repay. Many times people need a loan because they are unable to get their money from anywhere or their money is stuck somewhere. In such a situation, they want the entire loan amount along with interest be repaid after a fixed period. That is why it is important to ask yourself this question before taking a loan.

5- What fees are being charged on personal loans?
If you are going to take a personal loan, then you should already know what fees are being charged for it. It should not happen that you find the interest rate very attractive, but you have to pay many types of charges including processing fees, filing fees, and insurance separately. In such a situation, the loan rate that you are seeing in front of you, in reality, that loan can be much more expensive than that.

6- What is the credit score?
A credit score is very useful while taking a loan. Any bank looks at this score before giving you a loan. If your credit score is good then you can get a loan even at a lower rate. In such a situation, you have the power to negotiate. Having a good credit score means that your chances of repaying your loan are very high.

7- In how many days do you need the loan money?
If you are going to take a loan, then a big question is in how many days do you need the loan money? Some banks offer to give loans online in just 10 seconds, while some banks take up to 10 days to transfer the loan money to the bank account. So you should apply for a loan accordingly.

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