Top Six Rules to follow while taking a personal loan

As reputed private financers in Delhi, we are going to cover the top six rules to follow while taking a personal loan in Delhi NCR. 

Ensure timely repayment of your EMI

If you timely pay your EMI then it will help to improve your credit score. 

We suggest you never miss your EMI repayment. If you miss loan EMI then it will impact your credit score. It will also reduce your chance of getting a loan in the future. 

Borrow as much as you can repay

Naver borrows out of your repayment capacity. As reputed private financers in Delhi NCR, we suggest your total EMI outgo is not more than 50% of your monthly income. If your salary is 90,000 then your EMI should not be more than 45,000.

Keep tenure short

Long tenure means a big burden of EMI and interest rate. Shorter tenure means less burden of EMI and interest rate. But we suggest keeping EMI as per your monthly repayment capacity. 

For example, if you pay 40% interest on a borrowed amount in 5 years. Then your interest will be 80% in 10 years. 

Take insurance for the big-ticket

Experts advise that large borrowers should take insurance cover equal to the borrowed amount. Also, insurance policies linked to a loan are typically a single premium. But regular repayment plans are the best way to insure yourself. 

Switch your lender for better rates

If another financial institution offers you the loan at the best interest rate then you should have to switch your lender. Switch to vintage finance to get a personal loan at low-interest rates and processing fees. 

Understand terms and conditions – 

We suggest you carefully read and understand the lender’s terms and conditions before availing loan. If you are unable to understand terms and conditions then hire a financial advisor or chartered accountant before signing any agreement.