Are you also planning to take a personal loan personal loan? If yes, then keep these important things in mind. By following these important things, you can avoid many types of losses.
Mumbai . Corona has spoiled the health as well as the budget of the people. Due to declining income and rising expenses, the demand for personal loan has also increased. If you are also thinking of taking a personal loan due to any emergency expenses, then it is very important to take care of some important things.
Before applying for a personal loan, you should consider several aspects like your CIBIL score and how much loan to take. We are telling you about 5 such things that you should keep in mind before applying for a personal loan.
Don’t Borrow More Than You Need
Accurately calculate your need Take only as much loan as you need. It is seen many times that you are eligible for a higher loan amount than the amount you need. In such a situation, many people take more loans than necessary. Borrowing too much has an impact on your financial goals. Apart from this, if you are not able to repay the loan on time, then you also have to pay a fine. Not only this, your CIBIL score also deteriorates due to this. Due to which you may find it difficult to take a loan in future.
Know about interest rates
Before applying for a personal loan anywhere, you should know about its interest rates. Pay attention to the interest rates of all banks and NBFCs and apply where the loan is available at low interest. Apart from this, you can also find out about pre-approved loans in the bank where you have an account. Many times banks also provide pre-approved loan facility to their customers.
Check cibil score
If you have a good credit score or CIBIL score, then you can get the benefit of it in a personal loan. A good CIBIL score can reduce your processing fee and interest rate. Usually, banks also reduce the interest in addition to waiving the processing fee of the customer with better credit score. A CIBIL score between 750-900 is considered good. On the other hand, if it is less than 750, you will get a loan at a higher interest rate. Apart from this, you may also have to face trouble in getting the loan. That’s why take care of your credit score.
See also processing fee and other charges
Often banks include some hidden charges and processing fees in personal loans, which the bankers or agents avoid telling the customer while giving the loan. Apart from this, also find out the charges to be levied on pre-payment closure of the loan. With this you will not face any problem later.
Keep in mind the repayment capacity One should think carefully
before choosing the loan tenure. Loan installments should be decided by looking at your capacity. Because if you are unable to pay the installment, you will have to pay penalty, apart from this, it will also have a bad effect on your CIBIL score. One should try to settle the loan as soon as possible.
Take loan from concerned bank
If you are thinking of taking a loan, then take a loan from the same bank where you are taking your account, fixed deposit or credit card service from there. Because banks provide loans to their regular customers easily and at reasonable interest rates.
Taxes not to be paid on personal loan Personal loan is not taxed
As the loan amount is not considered as income, but keep in mind that you have taken the loan from a legal source like a bank or NBFC. However, to take advantage of the tax exemption on the loan, you will have to show several documents. These include documents like expenditure voucher, bank certificate, sanction letter and auditor’s letter etc.
