Getting a personal loan? Here are 7 things you should know first

Personal loans fulfill needs, but their interest rates are higher than other loans, leading to larger EMIs. Be mentally prepared.

Rushing into a personal loan can lead to regret. Compare interest rates from different banks and choose the lowest.

Borrow only what you can comfortably repay in EMIs. Excessive borrowing can create financial pressure and regret.

Pay your EMIs on time. Delays affect your credit score and future loan applications. Prepayment penalties may apply.

Choose shorter loan terms for lower EMIs and overall interest payments. Longer terms mean higher interest and larger installments.

Carefully review the terms and conditions, including interest rates, fees, late payment charges, and other expenses to avoid issues.

Avoid flat rate personal loans. They charge the same interest on the principal throughout, making the loan more expensive. Choose reducing rate loans.