Personal loans are one of the most versatile loans, with no restriction on what one uses them for and are unsecured loans, that is they do not need any collateral, which is the reason why they come at such a high interest rate. Personal loans can be used to purchase consumer goods, wedding, personal use, etc.
However easy it may sound, one should be very careful while selecting personal loans. Few of the important factors that one should remember while selecting a personal loan are:
1. The amount should align with your needs, which means one should not take un-neccessary high amount of debt and end up paying for long durations.
2. The tenor of the loan should be kept as little as possible, because the interest paid is a function of time and longer the tenure of the loan, more interest you pay to the lender. If you have the capacity to repay the loan in 3 years it shouldn't be extended to 4 years.
3. Variable interest loans are not always better, although there are possiblities that the interest rate might fall in future, but the chances of it going up are equal, therefore one should play safe and take up fixed interest rate personal loans. Always do research before selecting the type of personal loan.
4. As opposed to personal belief, in case of default, the lender can impound the property of the borrower for a limited time ( till repaid) or permanently.
5. Holiday period or the duration when the loan is not serviced are good for maintaining liquidity, but at the same time they increase the tenure of the loan and the borrower ends up paying more.
8 comments:
You have provided the good knowledge of the personal loan. The only thing you didn't mention yet is the personal loan interest rates. Only the nationalized bank provides the personal loan at the cheapest interest rates. The processing of the Private banks is fast but their interest rates are not bearable.
Amazing information. I was looking forward to apply for Personal Loan Noida but i was not aware about these minute things. Now i can easily avail personal loan to accommodate all my personal as well as economical wishes. i am impressed by your article.
Amazing article. You have provided useful information on how to avail personal loan easily.HDFC Personal Loan is easy to avail with minimal documentation and within 48 hours.
Informative blog! Personal Loan Pune is a multipurpose loan that a person residing in Pune can utilize for various tasks to fulfill their financial needs with quick approval and disbursal.
Many types of loans are available in the market to choose from. If you want to take loan for a limited amount then go for personal loan. For various financial requirements many people take this type of loans.more info
Post a Comment