Personal Loan Pitfalls: 6 Mistakes to Avoid Before Borrowing

• Don't focus solely on low EMIs; consider the total cost over the loan tenure, as longer terms mean more interest.
• Always compare interest rates and fees across multiple lenders, including banks and NBFCs, to find the best deal.
• Beware of hidden charges like processing fees, documentation charges, and insurance add-ons that significantly increase the actual cost.
• Avoid unnecessarily long loan tenures, even if EMIs are lower, as they can clash with future financial goals and increase total interest.
• Plan your repayment strategy, including setting up auto-debit and considering prepayment, before the loan amount is disbursed.

Why It Matters: Evaluate personal loans carefully; focus on total cost, compare lenders, and plan repayment to avoid long-term burden.