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HOW TO MAKE A CHECKLIST BEFORE TAKING A LOAN?

Availing a loan is a huge financial decision for every individual. However, the process of securing a loan has become easier these days, but the worry is still the same such as interest rates and repayment structure. A borrower has to think over different aspects of these financial products before and while he/she "Apply For Loan". Here, we have come up with a basic checklist for you of factors that you should check before availing any loan to fulfill your needs.

Can you bear the EMI?

It should be planned well before taking any loan as you have to cut off some amount from your monthly income to repay your EMIs regularly. Therefore, one must check all other financial obligations and make sure whether they can pay the installments or not. Always choose an EMI structure as per your repayment capability. An installment is determined on the basis of loan amount, interest rate and loan tenure.

Is my loan tenure long or short?

Most of the people believe that longer tenures are good as they tends to lower EMIs but they don’t understand that longer tenure ends up in paying high interest rate. So, always pick a shorter tenure because when never opt for a very short tenure as it will put you in place off financial jeopardy. Choose wisely between longer and shorter tenure as per your repayment capability.

What to choose - NBFC or bank?

Many of the financial institutions offer various kinds of loans at competitive interest rate either its bank or NBFC but with uncertainty of financial market, they might raise the interest rates in future which could lead you in debt trap and you have to switch to the other lender. Therefore, choose a money lender according to the provisions mentioned in the loan agreement of particular lender that suits your pocket well.

Am I considering my other financial goals?

When you "Apply For Loan Online" or offline, repaying the EMIs is not the only financial obligation you have. You have to provide your beloved one with all the basic amenities, pay other credit card bills and utility bills, mutual funds or any other insurance premiums. So when you decide to take a loan, you should also consider your long term financial goals. Make sure to balance the both, your pre-existing and future financial goals as well as loan repayment.

Have I read the loan terms carefully?

When you are about to sign the loan agreement, there are documents with that agreement which have all the terms and conditions listed into it. Make sure you read each and every word in that loan agreement. If you have any doubt, ask the lender right away before signing the loan papers. It will help you to face any financial complications in future, if it is having any of them.

Now when you are aware about some of the basic checkpoints, why don’t you apply for a loan smartly? Check your requirements and visit ShubhBank to enjoy a stress free loan journey.


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