If you For some reason, money is needed immediately and if you are planning to take a personal loan, then stop. You must know many things before taking a loan. If you do not do this, then you will make many mistakes together and there will be no option but to regret it. For the first time, what mistakes should be avoided by a loan person.
For the first time loans, often make these 6 mistakes
- Fixed vs to choose without considering redusing: For the first time, the loans do not know at what interest rate to take a loan. They take a loan without considering fixed VS Reduction and pay more EMIs. Explain that the interest rate at fixed rate and EMI remains the same for the entire loan period. In this, interest is calculated on the entire loan amount, which makes the total payment slightly higher. At the same time, interest in the reduction rate is calculated on the remaining loan amount (principal) after every EMI payment, which reduces interest every month and reduces the total payment. The amount of EMI in the reduction rate can gradually decrease or change according to banks.
- Not selecting the right lender, First of all, and most importantly, always identify the right lender in taking a loan. In today’s time, many young people take loans through mobile apps. These people definitely give loans in easy and short time, but they charge a big interest compared to banks. Many charge 40 to 50 percent interest. This makes the person taking the loan trapped. To avoid this, always take a loan from a good bank.
- Not comparing interest rates: Banks or NBFCs are more interest in the personal loan due to the unsecured. Research must be done before taking a loan. By doing this, you can find a loan bank at low interest. This will reduce the burden of EMI.
- Do not know hidden charge: Be sure to know the hidden charge that is taken before taking a loan. Some lender hidden charges, these may include processing fees, insurance on loan and others. Processing fees are mandatory, but they vary from one bank to another, and insurance on loan is voluntary and should be purchased only when you wish.
- Not taking pre-payment information: Many banks charge the pregnancy charge on premature repayment of loans. It depends on the loan amount. So find out which bank is taking charge. Many banks do not offer precent facilities. Therefore, after getting all the information, select which bank or NBFC to take a loan.
- EMI not doing calculations: The first time do not think of how to repay the EMI taking loan. Later they feel trapped in repaying the loan or default. By doing this, their credit score is bad. Therefore, do EMI calculation before taking a loan. That is, prepare first how you will pay EMI.
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