Dos & Don'ts of Personal Loans

Personal Loans are also known as Signature Loans. This is because personal loans are not backed by any assets. You can get a personal loan by showing your Income and loan repaying capacity. These are the highest interest rate loans because they are not backed by any assets.

If possible, you should avoid these types of loan at all. Here are some Dos & Don’ts of Persona Loans.

Dos -

- Look for interest on reducing balance

- Get Commitment on paper

- Negotiate hard for lowest interest rate

- Submit all the relevant documents to get the best quote

Don’ts -

-  Get carried away by flat rate of interest

- Monetize assets if you are unable to repay dues

Sustainable Choice -

- Gold Jewellery

- Approved Securities FDs & Insurance Policies

- PF (if it’s in existence for 5 years)

- Rental receivables

- Property