Outlook Money
Festive spending on travel, home upgrades, appliances and gifts can strain household budgets. Before borrowing, assess your needs, repayment capacity and the total cost of the loan.
Compare interest rates offered by different lenders before applying for a personal loan. A lower advertised rate may not mean cheaper borrowing once additional charges are included.
Processing fees and other loan-related charges can increase the total borrowing cost. Read the Key Facts Statement (KFS) and loan terms carefully before signing the agreement.
A longer repayment tenure generally lowers monthly EMIs but increases the total interest paid. Choose a tenure that balances affordable instalments with the overall cost of borrowing.
Review your monthly income, essential expenses and existing EMIs before borrowing. Ensure the new instalment fits your budget without affecting essential expenses or other financial commitments.
A good credit profile can improve loan eligibility and may help you secure better borrowing terms. Pay existing EMIs and credit card dues on time to maintain your credit score.
Borrow from regulated financial institutions and review repayment conditions carefully before signing. Plan your EMIs in advance and avoid borrowing more than you can comfortably repay.