⚡ Before Taking a Personal Loan • Checklist
- Personal loans are unsecured • interest rates are high (10-±24% p.a.)
- Only take personal loan for genuine emergencies or high-return investments
- Check your CIBIL score • 750+ gets best rates, below 650 may be rejected
- Compare rates from banks, NBFCs, and fintech apps • rates vary widely
- Check processing fee (1-±3%), prepayment charges, and late payment penalties
- Read the loan agreement carefully • especially the fine print on charges
- Calculate total cost of loan • principal + total interest over tenure
- Ensure EMI fits comfortably in your monthly budget
- Avoid taking multiple personal loans simultaneously
- Never take personal loan to invest in stocks or crypto • high risk
- Avoid instant loan apps with very high interest rates (36-±48% p.a.)
- Missing EMIs severely damages your credit score
- Consider loan against FD or gold • much lower interest rates (7-±12%)
- Prepay as soon as you have surplus funds to reduce interest burden
🚨 Warning: Predatory lending apps charge 36-±48% annual interest. Always verify the lender is RBI-registered before borrowing.
💡 Alternatives: Before taking a personal loan, consider: salary advance from employer, loan against FD/gold, credit card EMI (for purchases), or borrowing from family.
⚡ Calculate Personal Loan EMI