KNOW BEFORE TAKING PERSONAL LOAN A Personal loan is taken by an Individual to fulfill his/her personal needs. Repayment can be done through fixed EMI over a fixed term. No guarantor or co-applicant is required.
What Term Period will be suitable for my needs? Most of the personal loans come with a flexible term horizon. That means you can decide upfront when you want to pay back the loan amount. Regardless, the clearer you are about how long you will need the money for can help in avoiding loan default situation. Say, you’re borrowing for a foreign vacation with your spouse; an ideal term period for the loan can be around 4 months to a year.
How will the interest rate be calculated? Some Personal Loans have a static periodical interest rate, while others vary according to a certain aspect of the money market situation. It is advisable to know exactly how much interest will be levied on the loan amount you borrow, or the upper and lower limits of the dynamic interest rate, so as to remain on the safe side. It is also important to know on what basis/period time the interest gets levied on the loan amount.