Personal Loans: Decode the Fine Print for Financial Control

• Personal loan agreements contain crucial details beyond initial simplicity that affect cost and manageability.
• Focus on the Annual Percentage Rate (APR) as it includes all fees, providing a more accurate measure of the loan's total cost than just the interest rate.
• Processing fees are deducted from the loan disbursal, reducing the actual amount received and potentially impacting your budget.
• Loan tenure significantly affects total interest paid; a shorter tenure saves money, while a longer one increases overall cost.
• Be aware of prepayment charges, which can make early loan closure expensive, and late payment fees, which negatively impact your credit score.

Why It Matters: Understanding loan fine print prevents costly mistakes and ensures financial control.