A Personal Loan is an easy answer to your sudden financial #emergency. And with hassle-free online Platform like Cashiya making a Personal Loan has never been this easy. However, you need to be cautious when applying for a Personal Loan, as a single mistake can lead to big financial trouble for your future credit history. Incomplete awareness and carelessness, while applying for a Personal Loan, may lead you to a debt trap and create a financial crisis that may impact the future of your family finance.
Here’s a list of pitfalls you should avoid so that you are able to manage your debt comfortably:
- Right repayment capacity: Ensure you have the ability to pay it back. Do not borrow beyond your affordability. Use online EMI calculators to decide the loan amount, in accordance with your repayment capacity, before you apply for the loan. Emi calculator is available in Cashiya Personal finance app.
- Applying to too many platform and banks : Every time you seek a loan from a lender or online platform, a query is raised and it appears on your credit report along with the date. With each query, your credit score reduces. In Cashiya our algorithm based approach give optimized result every time so that your score is not dipped multiple times.
- No Full disclosure of existing loan: Existing loans and other financial obligations must be disclosed to the lender, because the loan amount will depend upon your commitment to other existing liabilities.
- Longer tenure with lower EMIs: Borrowers often tend to opt for a longer tenure for repayment of loans due to lower EMIs. But, remember the longer the loan repayment tenure, the higher amount you pay. It is advisable that you choose the shortest loan tenure possible, depending on your monthly repayment capacity.
- Prepayment Charges :Some lenders charge prepayment penalty for loan pre-closure. In such situation you will be forced to drag the loan repayment. So never forget to ask your lender if any pre-payment penalty is charged. Pre-payment penalties may vary from lender to lender. Certain lenders may charge these penalties at a flat rate or as an interest of a certain number of months.
Check you eligibility for personal loans before applying.
For more tips and suggestions on Personal Loans visit: Cashiya – Finance & Insurance blog.
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