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Expert take on the dos and don’ts before availing an instant personal loan online


Expert take on the dos and don’ts before availing an instant personal loan online


In today’s fast-paced world, a stoday’sxpense or an emergency may call for instant cash. The best approach to cover such financial obligations is by considering an instant personal loan.

With a personal loan, you can handle a medical emergency, pay an unexpected bill, consolidate your debt, or pay household expenses. Such a loan can also help you with your short-term cash flow problems.

Given that the loan is advantageous and comes without collateral, it is crucial to understand the dos and don’ts of the loan to avoid adon’tscalculations or misjudgments.

personal loan

Dos this before applying for a personal loan

Compare best rates

The equated monthly installment is reduced by lower interest rates (EMI). Many experts advise keeping your EMIs between 40 and 45 percent of your entire take-home pay to be able to make your payments on time. Examine several lenders’ loan interest rates lenders the most affordable ones.

Choose the appropriate tenure.

The loan’s term is another crucialoan’sor that requires your attention. You can choose a longer term to reduce your loan EMI. Knowing that a longer term means you will have to pay the lender more in compound interest would be best. Thus, due diligence before selecting a tenure is always a good practice.

Use an EMI calculator.

Use a personal loan EMI calculator before choosing a lender and loan amount. Give details such as the credit amount, selected loan period, and the proposed interest rate. It assists you in determining the amount that best fits your capacity for payback.

Read the terms and conditions.

Even when a personal loan is urgently needed, it’s best to wait before applying quickly. Always read the fine print before deciding. Recognize that these specifics, which individuals frequently prefer to neglect, include all the crucial loan information, such as the repayment plan and fees.

Don’t before apply for a Don’tsal loan

Apply with too many lenders

When you request a new loan, lenders check your credit score with credit reporting agencies. Several recent credit queries may impact your credit score. Additionally, it can lower your credit score if lenders reject your applications because of your bad credit.

High-interest rates

Avoid choosing loans with higher personal loan interest rates if you are not eligible. These loans will cost you a lot in interest payments. It would also help to always research the interest rates before applying for a loan.

Borrow from unknown lenders.

Many platforms offer immediate personal loans today. Though they could appear profitable, all these arrangements could be scams that steal your identity and cash. Thus, it is advisable to choose lenders only after thoroughly researching their reputations.

Default on the credit card or loan payments

Make sure to make every payment on time, as failure to do so could lower your CIBIL score and possibly result in bounced cheque fees. Always make payments on time or early.


A personal loan can help you overcome various difficulties during a financial crisis. But before you opt for that alternative, doing some research and homework is prudent rather than diving headfirst into it.

Todd R. Brain

Beeraholic. Zombie fan. Amateur web evangelist. Troublemaker. Travel practitioner. General coffee expert. What gets me going now is managing jump ropes in Africa. Had a brief career working with Magic 8-Balls in Libya. Garnered an industry award while analyzing banjos in Prescott, AZ. Had moderate success promoting action figures in Pensacola, FL. Prior to my current job I was merchandising fatback in the aftermarket. Practiced in the art of importing gravy for no pay.