Hyderabad: Lots of firms are coming up to offer unsolicited personal loans. They deposit loan amounts in your bank within seconds. Indeed, these loans are useful in times of emergency situations but taking them without looking into full details will leave us in a financial mess. In recent times, the non-banking financial institutions (NBFCs) are giving personal loans in huge numbers in order to increase the number of their loan accounts.
Sometimes, they are not even bothering about credit score. Once you need a personal loan, first decide which firm will best cater to your needs. A thorough look should be taken at interest rate and procession fee. Search the website of the firm concerned for all details. Take note. Collect only details but do not apply to all firms at once. Such an act will affect your credit report.
In a hurry to take loans, many do not carefully follow the terms and conditions. Different firms have different conditions. Some collect advance payment fee and insist on taking insurance policies along with loan. All these conditions will be known to your only when you take a keen look at the loan agreement. Any unwarranted haste in this matter will cause harm.
Also Read: Have you availed personal loan?
When you take a loan to meet an emergency requirement, it may not fulfil your need fully. So, it is better to go for a firm that will give maximum loan amount. Mostly, banks and NBFCs may not give total loan amount. Sometime, though we do not need, they will deposit the total eligible amount in our accounts. All necessary precaution should be taken in this regard. If a bigger loan is taken than required, there will be a needless higher burden of EMI (equated monthly instalment).
Timely payment of instalments is very important. Some firms give loans immediately after submitting an application without considering the loan repayment capacity. To the maximum possible extent, ensure that the EMIs will not cross 50 percent of your income. If all income is paid towards instalments, your future financial goals will be affected. If instalments are postponed, penalties and interest rates will cause unbearable burden.
It is important to know the difference between good loans and bad debts. Priority should be given to purchase those that have an increasing value over time. Making loans to fulfil luxuries and desires will remain a financial burden always. Taking personal loans to pay credit card bills is not justifiable under any circumstances.
