5 Things to Know Before Taking a Personal Loan

5 Things to Know Before Taking a Personal Loan A personal loan is a great way to manage urgent financial needs, but it is important to understand the key details before applying. Here are five important things to consider before taking a personal loan in India: 1. Interest Rate Matters Interest rates vary by lender and depend on your credit score, income, and loan amount. Even a small difference can greatly affect your total repayment. Compare rates from different banks and NBFCs before choosing. 2. Check Your Eligibility Lenders consider your age, job type, monthly income, location, and credit score. Use online tools like SwipeLoan to check your eligibility instantly and see offers tailored to your profile. 3. Know All Charges Look beyond interest rates. Check for processing fees, prepayment penalties, late payment charges, and foreclosure conditions. These hidden costs can add up over time. 4. Choose the Right Tenure A longer tenure lowers your EMI but increases the total interest paid. A shorter term saves on interest but increases your monthly outflow. Choose based on your monthly budget and repayment capacity. 5. Borrow Only What You Need A personal loan is a liability. Do not borrow more than required, just because you are eligible for a higher amount. Take a loan that fits your needs and repay comfortably without stress. Final Tip: Always read the loan terms carefully and choose a trusted platform like SwipeLoan to compare offers and apply with confidence.