Borrow for a defined purpose and a defined amount. Personal loans are the costliest retail credit, so an extra lakh 'just in case' is expensive comfort.
Prefer a shorter tenure if the EMI is affordable. A 3-year loan can cost half the interest of a 6-year loan for the same amount.
Ask about foreclosure rules upfront — some lenders block prepayment for the first 6-12 months.
Check the reducing balance rate, not the flat rate. A 'low' flat rate is often far more expensive than it looks.
If you own property or have a good salary account relationship, a secured or pre-approved offer will almost always beat a fresh unsecured loan.
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