Personal Loans: What You Need to Know

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Unlike a home loan, the borrower does not need to provide any security to the bank to get a personal loan

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Getting a personal loan requires very little documentation as compared to other loans like car loan or home loan

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Before you decide to take a personal loan, assess your need and ensure it is for a productive purpose

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Don't blindly follow the first bank, research the details of loans offered by all available lending institutions

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A better credit score creates a higher chance of getting a personal loan with low interest rates and good terms

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A low credit score leads to higher interest rates, lower loan amount, and stricter terms

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Interest rates on personal loans are high, so compare rates and processing fees among lending institutions

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Contact the banks to determine your eligibility for a personal loan, based on income and credit score

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Consider prepayment charges and avoid applying to multiple institutions in a short period to maintain a good credit score

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6 precautions while taking loan from apps

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