Personal Loan Agreement: Essential Checks Before Signing

• Check the Annual Percentage Rate (APR) instead of just the interest rate to understand the true cost of a personal loan.
• Be cautious of long loan tenures, as they can lead to significantly higher total interest payments despite lower EMIs.
• Understand the prepayment rules and potential charges, as some lenders restrict early repayment or impose penalties.
• Borrow only the exact amount you need to avoid unnecessary costs and protect your debt-to-income ratio.
• Avoid multiple loan applications, as they can negatively impact your credit score; use aggregators for soft checks instead.

Why It Matters: Make informed personal loan decisions to protect your finances.