Personal Loan Traps: Don't Fall for Easy Money! 5 Crucial Checks Before You Borrow

• Beyond interest: Understand fixed/variable rates, fees, and penalties; banner rates aren't guaranteed.
• Processing fees and insurance reduce the actual amount received, but interest is charged on the full loan.
• Check prepayment charges, lock-in periods, and foreclosure options to avoid hidden costs.
• Don't just focus on low EMI; longer tenures increase total interest paid; assess total repayment.
• Be aware of late payment penalties, bounce charges, and customer service for complaint resolution.

Why It Matters: Personal loans are easy but complex. Look beyond interest; understand all costs and terms before borrowing.