People who take personal loan may have many reasons such as medical emergency, children’s higher education or some huge purchases in their lives.
A personal loan is the best way to collect funds from the bank without much challenges.
Experts are of the opinion that people should opt for a longer term as the tenure of the loan. It will reduce the EMI outgo and also improve the overall interest. Best tenure for personal loan is between 1 to 5 years.
Before taking pre-approved loans from banks or fintech companies, make sure to calculate the interest rates as the total amount of EMIs should not go beyond 40-45% of your take-home salary.
If you are taking personal loan for fulfilling your lifestyle requirements and the interest rates are quite high, then you can postpone such plans for a later stage in your life because the current pandemic situation makes people work in office or business to survive and sustain and lead a secured financial future.
By Sahana Iyer