These are the 6 major rules to be learned before applying for individual loans.

Many people are now bending to individual debt for the purposes of money. Their access is also easy. However, most people do not know the full details of individual loans. Take it in a hurry and then undergo financial pressure. At least some major rules should be known when applying for personal loans. he is ..

They should be known before taking personal loans!

1. credit score: When you apply for a loan for personal loan, lenders check your credit eligibility. This shows if you have the ability to repay the loan on time. It is between 300–900. It is calculated by credit information companies such as CR if you have high marks based on your credit data.

2. Prior payment: When you take a personal loan, there may be some cases where you want to pay your dues before the last date. This process of cleaning the loan is called a prior payment or four close. However, they may have some allegations.

3. Fix interest rate: Interest rate is charged at a fixed rate or variable rate. Convertible interest means that the interest rate changes in the loan period. For example, when the economy undergoes a low interest rate cycle, rates can be reduced. However, when the economy undergoes a high interest rate cycle, they grow. However, individual loans usually have a stable interest rate. This means that it does not change the time period.

4. processing fees: Lenders charge a fee to process their individual loan. This is called processing fees. Banks usually provide loans except for a processing fee from the loan applicant. For example, the loan amount is Rs 5 lakh! Processing fee Rs. 5,000, however, Rs 5 lakh (-) Rs. 5000 = Rs. 4.95 lakhs.

5. Auto debit: A certain amount of EMI (equal monthly installment) is deducted from the bank account every month. This provision is called auto debit, which excludes EMI from the borrower’s bank account.

6. Purchase: It indicates the safety of the loan for the loan. This safety value usually exceeds the loan amount. For example, RBI has amended the rules of gold loan. Under this, the loan should not exceed 75 % of the total gold price! Personal loans are usually the United Nations loans, so they do not need to do underwriting.

(Note- This is just a legend designed for information. Personal debt must be remembered as risky.)