5 Questions to Ask Yourself Before Taking a Personal Loan

5 Questions to Ask Yourself Before Taking a Personal Loan

Personal loans are a great way to deal with quick cash needs. They are an affordable alternative to credit cards, and they can be used to address all types of funding needs. But before you take a personal loan, you need to ask yourself the following questions.

How much interest should I pay?

Your interest rate depends on a number of factors like credit score, the loan amount, your EMI tenure, the lender, etc. Typically, you will get the lowest interest rate when you have a healthy credit score. Not to forget the hidden charges, processing fees, prepayment charges, and cheque bounce charges. At StashFin, we offer personal loan at very competitive interest rates starting from 11.99%, and we have no hidden charges.

How long will it take to repay my loan?

After borrowing the money, you need to repay the money in equated monthly installment or EMI. Your EMI tenure will depend upon your loan amount and interest. At StashFin we have a very flexible repayment option ranging from 3 to 36 months.

Can I afford the EMIs?

Some people prefer to make their EMI as low as possible, so they can repay the loan within several months or years. But choosing a low EMI and longer tenure comes with the highest interest rates. Others prefer to pay off their loan as quickly as possible, so they choose to pay the highest EMI applicable. Choose wisely, aim to spend no more than 35 to 43 % of your income on debt/EMI.