Zee Exclusive: 5 mistakes to avoid while taking a personal loan

A personal loan can bring you the much needed financial relief if used wisely, hence understand everything about the personal loan process to avoid pitfalls. 

Personal loans are easy to get and can come in handy during financial needs. These loans are easier and faster to obtain than any other type of loan to help you get by in an emergency. You can obtain a personal loan without the use of any collateral. However, while considering a personal loan, it is prudent to avoid the some major mistakes: · Borrowing loan beyond your repayment capacity: A smart rule while borrowing a loan is to live within your means. The corpus of the loan such be such that you will be able to return on time. One rule of thumb is that the EMIs of personal loan should not exceed 10 percent of your net monthly income. · Not comparing lenders: If you're getting a personal loan, ensure that you're getting the most acceptable deal that is available in the market. After all, borrowing money always has a cost, and the lower your total loan cost, the easier it will be to get out of debt.