Personal loan – When should you avail one?

Personal loan is an instant solution for financial needs. It requires minimum documents and no usage monitoring once sanctioned. But when should you avail one?

Quick Checklist:

1. Will this loan benefit your life long-term?
2. Can you afford the EMI after deducting your monthly expenses?
3. Can you manage expenses for 12-60 months (the tenure)?
4. Is your credit score healthy?
5. Is your life steady for the next few years?
6. What are your alternatives if you can't repay?

Dos and Don'ts:

• Do borrow when alternatives are adequate.
• Do consult a financial advisor first.
• Don't confuse personal loans with other EMIs.
• Don't over-borrow and risk bankruptcy.
• Do check eligibility before applying.

Conclusion

In order to make life simpler, platforms like Octopus Loan connect you with 26+ banks to give the best advice on when and how to manage a personal loan.