If you want to take a personal loan | how to start

If you want to take a personal loan, it will benefit you. Taking out a personal loan during the festival-related season is commonplace. Most people find it promising to buy a new home or a new car during this period. Also, people can borrow to purchase gold or festival-related items.

personal loan

If you want to take a personal loan

Whatever the reason, it's essential to be careful when borrowing. Spend accordingly Not knowing the spending limit is wasting money and impacts the quality of spending, which means setting aside a reasonable budget for personal spending. Setting upper and lower limits on expenses provides practical direction for costs and allows you to get the right credit return.

If you want to take a personal loan during the festive season, then know these things first.

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1.What is the purpose of obtaining a loan

Costs are higher during the holiday season. Unplanned debt can jeopardize financial planning. Therefore, the benefits of a personal loan should be obvious. Once the budget is known, the costs will be the same.

Check interest rates on goods.

When choosing a loan, a person should be well aware of the various personal loan mechanisms. Its central fact is the interest rate. As the holiday season approaches, it benefits from multiple options and discounts.

Rest assured with debt repayment

When considering a personal loan, it is essential to choose a term convenient for you. There are times when you can quickly repay a loan.

Timelyloan repayment

Always try to pay off your personal loan on time. Lack of EMI or late payments will affect your financial plan. And if you don't pay on time, your credit score will also be impacted.

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personal loan 

2.Keep these four things in mind before taking a loan in the festival season

 Festival season is about to begin. In this season, people consider buying new goods, vehicles, and homes auspicious. Many times people take a personal loan for all this. If you are also planning to take a loan during this time, you should take care of the following points. Do not take too many loans.

Always keep in mind that you do not borrow excessively. Many attractive offers are often offered on loans. Don't be tempted by them. Take a personal loan as per the need and keep in mind that you will repay this personal loan on time. Before submitting a unique loan application, please check it carefully.

Check eligibility before applying.

The personal loan is given by looking at our credit score. Many people do not see their eligibility before applying for a loan and apply for a large loan. This makes the loan application likely to be rejected. To avoid this, check your eligibility. You can do this work efficiently from home sitting on the Internet.

Keep the credit utilization ratio between 40-50%

Use a credit card instead of cash transactions for shopping during festival season. With this, you will get many discounts, and your credit score is also better. Keep in mind that keep your credit utilization ratio up to 40-50 percent. If you exceed this limit, then you can reduce your credit score. If you feel that you can exceed this limit, get your card's limit higher from the concerned bank.

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Compare lenders before taking a loan.

Compare all the lenders before taking a loan. Apply for a personal loan from the place where you are getting a personal loan at low-interest rates. The interest rates, compare based on individual loan tenure, processing fees, prepayment penalty, etc.

3.Ask your self these four questions before taking a personal loan, then create a mood for taking a loan

personal loan 

A personal loan is an unsecured loan that anyone at a bank or non-bank finance company (NBFC) can borrow. While buyers can use it for many purposes, buyers should ask themselves a few questions before applying.

Why do I need a loan?

First of all, ask yourself why you need a loan, why do you take it. You are thinking about buying something, taking it home or on vacation, or paying off your credit card. Ask yourself if you can use the savings or postpone the purchase?

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Are you eligible for a loan?

Typically, lenders provide loans by looking at credit rating, income, repair history. Therefore, before taking a loan, you should look for eligibility criteria on companies or banks' websites and then continue.

You can pay: If you want to take a personal loan

Clients must take out a personal loan that they can quickly repay. In addition to meeting the needs with borrowed money, there is something that the borrower must be able to pay. Therefore, you should analyze your financial situation and check the EMI calculator on the lending companies' website. This will give an idea of ​​the monthly payments based on the loan amount, duration, and interest rate.

What is the loan term? : If you want to take a personal loan

When applying for a loan for individuals, clients should also check the expiration date of the loan. Can take a personal loan for a period of 6 months or at least five years. This means that ownership and interest together determine the monthly repayment.
4. Loan Moratorium: Interest Rate Festival
The central government provided EMI with personal loan assistance during the Mauritian period, giving millions of people the holiday season. The Ministry of Finance issued instructions for this. Let's find out the answers to the main questions that arise in this regard. 

What is the issue: If you want to take a personal loan

 To provide relief to the people troubled by the Corona crisis, the Reserve Bank gave the facility to postpone (later repay) the moratorium, giving comfort to the people from reciprocating the personal loan installment from March 1 to August 31. was. But the Reserve Bank gave this exemption to the banks to take an interest in the outstanding for this period. This interest collection meant that the customers had to pay compound interest on the outstanding loan.

This was opposed based on why the banks are being exempted from recovering interest on compound interest. In contrast, all the businessmen and people are troubled by the Corona crisis. The hearing of this issue is still going on in the Supreme Court. The government had submitted an affidavit and said that it would forgive interest on the interest on loans up to Rs 2 crore.

The Supreme Court had asked to implement it soon and indicated that the government should implement it before Diwali. The Supreme Court said that the Diwali government of the common man is in the government's hands. Now the finance ministry has issued detailed instructions in this regard on October 23.

What is the scheme: If you want to take a personal loan?

 The government will return the lump sum amount to the eligible loan holders for six months from March to August. This amount will be equal to the difference between compound interest and simple interest on the loan installment. The amount will be returned to the bank accounts of the customers.

will make payment by November 5:If you want to take a personal loan

 The Financial Services Department of the Ministry of Finance said that it would make this payment on or before November 5. Significantly, the Supreme Court has the next hearing in this case on November 2, and the government has to reply by then.

Who will get the benefit: If you want to take a personal loan

  will benefit a total of eight types of loan holders like MSME, education, credit card dues, housing loan, auto loan, personal loan, durable consumer loan, and consumption the loan.
What are the conditions:
The condition for this is that the loan should be classified under the Standard category and should not be declared a Non-Performing Asset (NPA). Under this, this benefit will also be available on a personal loan from non-banking financial companies and housing finance companies.

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The service to those who do not apply Rhetorium: This scheme's service will be available to all personal loan holders up to Rs 2 crore, whether they have used it for a moratorium or not. For this, I will do the calculation based on the interest rate till February 29. The government will refund this amount in a lump sum, and according to an estimate, it may cost around Rs 6,500 crore from the central government.