An ideal world means that everyone had enough money to meet their needs. Life is uncertain and so are the needs and expenses. The moment you feel you are managing your finances well, an emergency may occur. The reality is very different. There will be a situation, where you will have to borrow to meet your emergencies and goals. An instant personal loan is easy to get and repayment is flexible. With minimal documentation and an easy end-user facility, you can get a personal loan instantly. However, borrowing is not easy as it seems because you end up paying double the amount you have borrowed. If you are at all in the situation to borrow, you will have to understand the golden rules to follow while borrowing.
10 golden rules to follow while taking a loan
- Borrow what you can repay. You must go for the amount after considering several factors. Remember the amount you borrow you need to pay it back with interest. Consider your income and debt-income ratio before you settle an amount in your mind.
- Keep tenure short. It may give you a large amount of EMI, but you will end up paying less. The more you extend your loan tenure, the more rate of interest you pay. Keep tenure short and get loan free in just a few months.
- Ensure timely repayment. You will have to repay your loan amount in an easy and simple installment. Make sure you take your bill payments seriously and get it done in time.
- Don’t borrow to invest. If you are borrowing to invest in any share or mutual fund, that is wrong. The profit you get from your investment will be paid in your loan interest.
- Don’t waste your loan amount. If you are getting an instant personal loan, don’t waste it by spending on unnecessary expenses.
- Keep shopping for better rates. If you are shopping using your loan amount make sure you are considering the rates well.
- Read your terms and conditions. In the urge of excitement, don’t miss out on your terms and conditions. It will have all the important information about your loan and payment.
- Look for the right loan provider. Compare rates before you settle down for a particular loan provider.
- Consolidate your loan if you are having multiple debts in the market. Ensure that you pay on EMI at one particular time.
- Keep nominee in your loan so that if something happens to you, your family can take care of it.
Wrapping up
Keep handy a personal loan calculator to make all the necessary calculations within seconds. It will keep you updated and manage your finances well.
