Everyone needs a personal loan at some point or the other. In such a situation, you must ask yourself some questions, so that you do not have to face any kind of problem later. First of all, you have to decide whether you want to take a loan from a credit card or a bank. Apart from this, it is also important to think about how much time and how you want to repay the loan. Let us know what 7 questions you must ask yourself before taking a loan.

1- How much money do you need?

Before taking any loan, you must ask yourself this question how much money do you need? If you need less money, then first of all you should borrow from friends or relatives. If you do not get money from there, then taking a small loan from a credit card can be a good option. Taking a big loan from a bank would not be wise at this time.

2- In how much time can you repay the loan?

Most loan-giving companies make EMIs ranging from 6 months to 7 years. The sooner you repay the loan, the less interest you will have to pay. However, also keep in mind that if you have less money, you can also become a loan defaulter. Therefore, before taking a loan, keeping in mind your income, decide how much time you will be able to repay the loan completely.

3- How much interest is being charged?
If you take a loan, then you will have to pay interest. In such a situation, you should check in advance where you are getting a loan at a cheaper rate. Sometimes the interest rate can also be less or more according to the loan period. In such a situation, before taking a loan, pay attention to this and take a loan for the right period at the right rate, so that later you do not have to pay more money as interest.

4- Do you have to pay EMI or will you pay the lump sum amount?
If you take a loan, then most lenders start taking EMI from the very next month. In such a situation, while taking a loan, you have to keep in mind whether you will be able to repay the EMI from the very next month or not. Also, keep in mind how much EMI you can pay. Many times people need a loan because they are unable to get their money from anywhere or their money is stuck somewhere. In such a situation, they want the entire loan amount along with interest be repaid after a fixed period. That is why it is important to ask yourself this question before taking a loan.

5- What fees are being charged on personal loans?
If you are going to take a personal loan, then you should already know what fees are being charged for it. It should not happen that you find the interest rate very attractive, but you have to pay many types of charges including processing fees, filing fees, and insurance separately. In such a situation, the loan rate that you are seeing in front of you, in reality, that loan can be much more expensive than that.

6- What is the credit score?
A credit score is very useful when taking a loan. Any bank looks at this score before giving you a loan. If your credit score is good then you can get a loan even at a lower rate. In such a situation, you have the power to negotiate. Having a good credit score means that the chances of you paying back your loan are very high.

7- In how many days do you need the loan money?
If you are going to take a loan, then a big question is that how many days do you need the loan money? Some banks offer to give loans online in just 10 seconds, while some banks take up to 10 days to transfer the loan money to the bank account. So you should apply for a loan accordingly.

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