6 Personal Loan Mistakes to Avoid: Protect Your EMI & Pocket

• Avoid high-interest loans (24%+) that lead to heavy EMIs; always compare offers.
• Choose reliable, RBI-approved lenders (banks/NBFCs) and avoid unknown, suspicious, or unregistered platforms.
• Only take personal loans for essential needs, not for non-essential expenses like vacations, to prevent heavy EMI burdens.
• Factor in all costs, including processing fees (up to 4-5%) and other charges, not just interest rates, to determine the total credit cost.
• Always read the fine print to avoid unwanted charges, such as default loan insurance, which can significantly increase EMIs.

Why It Matters: Protect your finances by avoiding common personal loan mistakes.