A personal loan happens to be one of the most affordable alternatives to any credit card. It can help you provide the needed finance whenever you are trying to make a big purchase.
The 7 important questions to ask before taking up a loan
- What is the amount of loan that you require?
It would depend upon your need for taking the loan. Make sure that you take the loan only if you are in financial need.
- How much interest do I need to pay?
The interest rate will depend upon various factors, including your loan amount and term or credit score.
- How would I pay for the monthly installment?
While using a debt consolidation loan, there are fewer options of sending the funds directly into the creditors’ account.
- How long would I take to pay back the total loan amount?
You need to make the payment monthly at an interval of 30 days. Most lenders would provide you with a repayment term of 6 months to 5 years.
- Is it possible to get a loan amount to afford the payment?
A personal loan from a reputed lender such as Bajaj Finserv would help the borrower to get financial help. But make sure that you choose the loan amount wisely to afford the monthly payment.
- Does the loan have fees?
There may be various kinds of fees attached with the personal loan. Make sure that you look for these charges to plan your budget in a better way.
- Should I get a loan with a low-interest rate?
If you want to get a loan with a low-interest rate, you should have a good credit score of 750 and above to qualify for a low personal loan rate.
Moreover, if you can make a soft inquiry on the lender’s website, you can get various options for getting a personal loan.
Read Also: Tips To Securing your First Personal Loan from NBFCs in India
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