How to Know You’re Choosing the Right Personal Loan - Loan Trivia

Breaking

Full-Width Version (true/false)

Monday, 2 April 2018

How to Know You’re Choosing the Right Personal Loan

Planning to take a Personal Loan? Do you think you are choosing the right Personal Loan scheme? Choosing
the right scheme is very crucial to avoid the Personal Loan from becoming a financial burden. Hence, answering
the below-mentioned question is imperative.


1. Purpose of loan: Having clarity on the purpose of taking the loan is an essential prerequisite. You must know
why you are taking the loan and apply for a suitable, purpose-specific loan. For instance, if you need the money to
finance your business - you can take a business loan given that you are eligible. In any case, if your need is very
personal nature and there isn’t a fitting option available, you can take a Personal Loan.  

In general, people take a Personal Loan for these purposes:
  • Debt consolidation
  • Paying for higher education 
  • Cover the expense of marriage
  • Home renovation and repair
  • Financing your startup idea
  • Paying the down payment etc.  
  • If you need the Personal Loan for these purposes, you can go ahead and apply for it.  
2. Interest rate: the Personal Loan is an unsecured loan and therefore the interest rate can be contradistinction
higher than another loan, especially if your credit score isn’t in perfect shape. So, first thing is to do some self-analysis
and determine if the liability can be resolved using savings, if not - make sure you finalize the best scheme with the
lowest interest rate. Some people just credit hungry. Their repeated Personal Loan request highlights their credit hungry
characteristics to the lender, and the lender blacklists them. Make sure you don’t have such intentions.



3. Is your income sufficient: Taking a Personal Loan is justified only if your income allows you to do so. In layman’s
language, if your income enables you to repay the loan easily, you are free to take the loan. But, if your income levels are
low, you should better rethink your idea and borrow only what you can repay easily.

No comments:

Post a Comment