A Personal Loan is easily accessible, and you can take it for any purpose, especially for buying a vehicle. And it also comes with good interest rates and repayment tenure. But applicants aren’t attentive while applying for Personal Loans. Here are some common mistakes many applicants commit when taking a Personal Loan. During a financial emergency, a Personal Loan is the most appropriate option. 

Mistake 1

If you don’t check your CIBIL score, then that’s a big mistake. Because lenders check your score and evaluate your creditworthiness. So, if you don’t have a good credit score, there’s a chance of rejection. 

Mistake 2

You should not apply for too many Personal Loans because this is a misstep. If you are in a desperate situation for money, there’s a possibility that you will apply for a Personal Loan from too many lenders. This leads to a hard enquiry which will reflect on your credit report. Also, the lenders will assume that you are credit hungry. 

Mistake 3

It would be best if you read the fine print attentively. The lenders will assure you of speedy approval during your application. But it would be best if you did not fall prey to such things. It is important that you read the terms and conditions carefully for an instant personal loan. And if the terms are not favourable, do make the right choice in choosing the best loan.

Mistake 4

If you want to pay smaller EMIs, you will go for a longer tenure. But this will increase the debt burden, and you will have to pay more on the interest rate with longer tenure. 

Mistake 5

A Personal Loan is advisable when you have real financial needs, and if you need it for recreational purposes, it will become a burden for you later.

Mistake 6

You must check the personal loan eligibility criteria  because different lenders have different eligibility criteria. Applying for the loan after checking your eligibility criteria will help you improve your eligibility and get better loans.