5 do’s and 3 don’ts of personal loans

Finance

If you have been needing cash for a huge expense, then personal loan is one of the best options available in the market for you. It is quite easy to get a personal loan but sometimes repaying is a big issue. If you are new to the loan market, then here are some dos and don’ts for you…

Dos of personal loans: –

  1. Examine all your options before you opt for a personal loan. When you are planning out that you want a personal loan Philippines, make sure you check the internet for deals to get a better offer on your loan. You don’t want to compromise with a high interest rate and low loan amount. Check what the EMI you will be paying monthly with the interest rate to see if you can afford it. Don’t rush with your decisions; take out some time to decide properly.
  2. Other than checking deals at different places, expand your horizon. If a personal loan is not what you want, then go for a secured loan against your gold jewellery or any other asset that you have. You can get a cheaper interest rate in such cases.
  3. Take as much as you require. If you take more than what you wanted, then you will have to repay that much amount with the interest. So think wisely before you decide on the amount.
  4. Make sure you go through the loan document well before signing anything. Check what are the terms and conditions, the EMI amount, interest rate, penalty charges, etc. Some personal loans marketed by agents can be just to meet their sales targets and could put you in a fix. So be aware about things and read your documents thoroughly.
  5. Go to a reputed bank! If you are not sure where you should take your personal loan from then go to a reputed bank. For example, if you are a first timer then we suggest plantersbank personal loans or banks like Citibank.

Don’ts of personal loan: –

  1. Don’t misuse the money in the wrong way. A lot of people randomly take personal loans without thinking about the repayments. Don’t take the loan for gambling, an amateur business idea, unwanted investment, for a vacation, etc. You might enjoy your time with the money you receive but when it comes to repaying the amount, you will know the drawbacks of misusing the loan amount.
  2. Don’t opt for illegal ways to borrow. You cannot just randomly find a company on the internet and take loans from them. Make sure you go through the company, check if they are real and authorized to provide loans.
  3. Don’t take more than what you need. If you need only 1 hundred thousand PHP, then take a little extra like 1.25 hundred thousand PHP. Don’t go about and take a personal loan of 2hundred thousand PHP just for the fun of it. You will have to repay the entire amount with additional interest rate. So, make sure you consider the fact that you are the one who will be repaying the amount!

Make sure you keep these dos and don’ts in mind when you are opting for a personal loan!