Personal loans are one of the fastest ways to access funds for any purpose. But before you apply, here are five crucial things to consider...
1. Check your credit score
A CIBIL score above 750 typically unlocks the best rates. Review your report for errors before applying.
2. Compare interest rates
Rates can vary by 6-8% between lenders. Use an EMI calculator to compare total cost of borrowing.
3. Watch the processing fee
Most lenders charge 1-3% of the loan amount as processing fee. This adds to the total cost.
4. Read the fine print
Look for prepayment penalties, foreclosure charges, and bounce charges. These can add up quickly.
5. Have your documents ready
PAN, Aadhaar, last 3 months salary slips, and bank statements are typically required for instant approval.