Thumb rules to follow…
Sometimes to make our dreams come true, we have to spend a lot of money. A new house, a better car, an upcoming wedding or education abroad can cost a lot of money. Loans are to help us. The loan is a debt that must be repaid. Recent polls have shown that 37% of those having loans do not take them as much as they can afford, but as much as needed. So, are there any thumb rules to follow while taking a loan? Let’s avoid getting a raw deal by following these simple steps. While taking a loan, you should have peace in mind that you won’t get cheated easily.
Research, then Borrow!
Borrow an Affordable Sum of Money!
Don’t live beyond your means. Reduce the chances that your personal financial history will end up on a blacklist. Taking a loan based on your payback capacity means to borrow the least amount of money you need to accomplish your goals. By reducing the amount you borrow, you avoid unwanted penalties and your credit score getting impacted negatively.
Short-term or Long-term Loan Tenure?
Tenures for short-term loans range from a few weeks to 12 months, while long-term loans come with a repayment tenure of 12-60 months for personal loans or can go up to 30 years for a house or car loan. If you borrow a small amount, a short-term loan is a valuable option for solving your temporary financial problems. Should you have a large financial requirement, long-term loans are better suited.
Always Inform Your Family Members About the Loan!
Discuss the reasons for taking a loan, the amount, and the repayment issues with your family members. Never undergo the stress of carrying and repaying the loan alone. Your family members can suggest better ways of overcoming your financial obstacles and help you maintain a good repayment history.
It seems almost unbelievable, but you can save yourself from any difficulties and stress while taking a loan once you have learned all these principles. Tips given above are useful tools in hand for not facing trouble when getting your loan.