Top 5 mistakes you should avoid while getting a Personal loan in Delhi
Posted: Sep 19, 2019
Availing a personal loan is easy these days. That is why many people including from Delhi are signing up to get loans quickly. Personal loans are a smart way to quickly raise money to meet certain expenses that are time bound and personal in nature.
However, people often tend make mistakes while getting a personal loan. Realizing the mistake after you apply for personal loan will serve no real purpose. Mistakes can cost you money and time, both of which you cannot afford to lose. Read on to know about five common mistakes you should sidestep.
1. Taking a personal loan where interest is quite high - Personal loans are easily available for worthy borrowers. However, do not make the mistake of taking a personal loan where the interest rate is very high. You can avoid this mistake by comparing what different lenders are offering you. Apply for personal loan that is the cheapest. Tata Capital personal loan interest rates in Delhi start at 11.25%. Always do a comparison and see what works best for you.
- Borrowing a personal loan beyond your repayment capacity - You should understand your ability to pay the loan EMIs regularly before taking a new personal loan. Generally, the EMI of a personal loan should not exceed 15-20% of monthly take home pay. If your total EMIs including the one on new personal loan is crossing 20%, repay some old loan before you apply for personal loan in Delhi again.
- Getting a personal loan with long tenure - Taking personal loans with small EMI may help your family budget. But did you know that you pay more interest cost over a longer tenure loan than a smaller tenure loan? Always opt for a personal loan tenure that is the lowest. Tata Capital gives personal loans for just 12 months duration in Delhi. While personal loans are given for up to 72 months, try to avoid very long tenure loans.
- Not checking eligibility criteria for personal loans - Some personal loan borrowers do not properly go through the eligibility and thus find themselves getting rejected after they apply for personal loan. Do not make this mistake. It takes just a minute to find the eligibility norms. Tata Capital gives you personal loans if you are between 22- 58 years, have a minimum monthly income of Rs 15,000, have same job for six months and a minimum of one-year work experience. Different loan providers have different norms, so kindly opt for the one which is most flexible.
- Hurrying up with form filling and regretting later - Personal loans are for emergency. So, it is understandable that you want the loan money in a hurry. But that is no excuse to avoid reading the fine print altogether. Do not just sign on the dotted lines. Try to read the loan agreement carefully; ask questions where required. Ask the personal loan provider to provide details about fees and charges related to processing fee, prepayment and part repayment, penalty interest, foreclosure, repayment document issue etc.
A mother of 2 lovely kids. Digital Marketer by profession and a blogger by passion! Here to inspire and motivate people with my writing.