When you need money, a personal loan is the best option. With low-interest rates, flexible payments and quick approvals, it’s no wonder why many people choose to go this route. But before you sign on the dotted line, here are three things that’ll make taking out a personal loan more difficult:
Too many credit enquiries
Avoid too many credit enquiries. If you’re applying for more than one loan at a time, the lender may think you are desperate for money and will charge you higher interest rates. In addition, it can also affect your credit score if lenders see too many loans on your record within a short period.
How long does it take to get approved for a personal loan It depends on the loan type (e.g., secured or unsecured) and how much information they have about you as an applicant. However, within 24 hours, a notice of approval is standard if all requirements are in place. aaaaaaaaaa
Paying for other monthly expenses with a loan
You should avoid paying for other monthly expenses with a loan, like your cable bill or car payment. You might think it’s a good idea because you can save money, but in reality, it will end up hurting you more than helping.
When you borrow from credit cards or loans, interest is applied. The interest rate on personal loans is usually higher than that of credit cards, making it difficult for some people to pay off their debt.
Accepting a loan with long repayment terms
You should avoid taking a loan with long repayment terms. Generally, the longer the term, the more expensive your loan will be as it takes more time to pay it off, and you are paying interest on that money for longer.
For example: If INR 20,000 is your unsecured personal loan with a repayment term of 5 years and an interest rate of 10%, then you will end up paying back INR 22,615 (INR 20,000 principal plus INR 2115 interest). On top of that, you’ll have paid the processing fee and other amounts. The longer the loan tenure, the more payment you end up making.
Bonus: Accepting the most accessible available loan
Instead of an available personal loan, compare loan offers from leading lenders. LoansJagat allows individuals to compare loan offers from over 40 banks and NBFCs.
Applicants can apply and choose the best personal loan or debt consolidation loan that suits their requirements.
Personal loans come with low-interest rates and higher chances of approval, but you should avoid taking one when you’ll be paying for other monthly expenses.
Personal loans are a great way to consolidate your debt, but you should only take one if you have the funds for other monthly expenses. Personal loans come with low-interest rates and higher chances of approval, but they can also be more expensive than credit cards in the long term. LoansJagat offers the best personal loan deals so that you can compare all the offers available in one place and choose the best loan for yourself.
Personal loans are a great way to get cash for your expenses and can be an easy way to get approved. However, it would be best to be careful about using these loans. Personal loans are not a substitute for other forms of credit like credit cards or bank accounts. They are for short-term emergencies where you don’t have access to any other financing option. If you plan on taking out a personal loan today, make sure it’s going towards something specific like paying off some bills or buying new furniture!
Use the technology platform of LoansJagat to get the best personal loan interest rates.
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