A personal loan is the money borrowed to fulfil one’s financial needs or wants, which is to be repaid with interest over a fixed period. Personal loans can be taken to meet various needs and wants. However, it is important to evaluate beforehand how crucial it is for you to take the loan and the level of comfort and surety you have about paying it back.

How much you need

Calculate the exact amount of money you need for a personal loan in India before sending a request. Assess your needs and evaluate if you can repay the loan.

Payback time frame

You should know the time frame within which you need to pay back the loan. It will do well to finance how much you need to pay per month before borrowing the money. You should be able to afford the monthly payment as per the scheme you have opted for.

Consider alternate options

Personal loan interest rates in India are very high, and they are one of the most expensive forms of loans. Thus, consider opting for alternate options such as loans against fixed deposits or loans against shares. Evaluate the rate of interest, duration, and tenure before making a choice.

The urgency of the money

After requesting the loan, you may need it anytime between the same day to a couple of weeks. Accordingly, choose the banker you’re going to avail the loan from. Ensure to check with them the time taken from the application to disbursement.

It is recommended that you keep the above tips in mind before availing of a personal loan for an easier payback journey.

Additional Read: Applying for a Personal Loan? Use Fullerton India EMI Calculator First