Personal loans are a good option for seeking emergency funds. In case you have a medical emergency or are renovating your dream home, availing instant personal loan can help. You only need to keep these things in mind before applying for a personal loan. 

1. Interest rates: Do not search out for the lowest interest rate. Inquire about the type of interest rate applied on the personal loan. There are two types of interest rates –  flat interest rate and second reducing the balance interest rate. You might get attracted towards the lowest flat rate, but lower interest rates don’t mean you are going to pay less.

2. Include all costs: Apart from the principal amount and rate of interest, there are many expenses incurred when you think ‘personal loan apply’. You must ask about the other costs, including processing fees, pre-payment fees, service tax and late payment fees.

3. Assess your needs: You need to check out your needs for the personal loan. You might meet the personal loan eligibility criteria of ₹15,00,000 amount, but you need to borrow the required amount to address your needs. Remember you have to repay the interest as well. Thus, borrow as much as you need and not in excess.

4. Ensure your capabilities: Check out your repayment capabilities with personal loan EMI calculator. Make sure your savings or income can cover the EMI along with the principal and interest amount. Do an honest assessment. Failure to default the EMI will result in penalties and can spoil your credit history.

Additional Read: How Personal Loan Helpful For You in Emergency Situations?