Rules to follow when taking a personal loan

by Loan Kumar Loankumar

There are certain instances when suddenly a financial crunch crops up and we fall short of savings to address that financial crunch. Alternatively, we might require money to plan a dream vacation or buy the car we had always wanted. In such cases, a personal loan comes to be of great help to us. A personal loan is a type of unsecured loan and helps to meet your current financial needs. A personal loan is something that does not require collateral or security and is offered with minimal documentation. This loan is further used to meet legitimate financial needs. The interest rates of personal loans are generally fixed hence one shall require to pay the loans with regular even payments. Personal loans disbursements have grown at a scorching pace over the past few years. A personal loan is helpful in a variety of ways and there are specific rules that need to be kept in mind while taking a personal loan.

• To get the personal loan one needs to be very careful about the lender. Many bank and financial institutions offer meager-interest rates for personal loans. These offers are sent to the customers via messages and emails to tap the potential customers. One must be very careful not to fall for these offers which many times are just a show put up to fraud customers.

• While taking a personal loan one should always carefully calculate the interest rates offered to them by the banks and the financial institutions. Many of the banks and the financial offers flat rate of interest on personal loans. However, the fat rate of interest is the misleading metric, because it does not take into account the reduction in the balance with every EMI paid by the borrower.

• Advance EMIs is another way in which the borrower ends up paying more amount than the contracted rate. Hence while taking a personal loan it is advisable not to opt for advanced EMIs.

• Never approach too many lenders for a personal loan. Each time an individual approaches a lender for the personal loan, his credit score is assessed to make sure whether he will be able to pay back the loan or not. If an individual approaches too many lenders individually, the person might be seen as a credit hungry person and your credit score could take a beating.

Loan Kumar is a platform that helps us in availing various types of loans such as Home Loan in Delhi, personal loans, business loans, loans against property. It is committed towards its client to provide them with the best service. Loan Kumar has ties with all the leading banks and other financial institutions that ensure a hassle-free loan approval to its applicants.