{"id":7021,"date":"2023-08-29T01:31:40","date_gmt":"2023-08-29T01:31:40","guid":{"rendered":"\/blog\/?p=7021"},"modified":"2025-01-21T15:28:09","modified_gmt":"2025-01-21T09:58:09","slug":"mistakes-to-avoid-when-availing-a-personal-loan","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/personal-use-loan\/mistakes-to-avoid-when-availing-a-personal-loan\/","title":{"rendered":"Mistakes to Avoid When Availing a Personal Loan"},"content":{"rendered":"\n

A personal loan is the most convenient\nand quickest way to source money when you need it urgently. Whether it is money\nyou require for an emergency, to cover for a temporary shortfall, pay for an\nimmediate expense, buy an asset or go travelling, personal loans can be of\nimmense help. Personal loans do not require you to put up any collateral.\nUpon approval, the funds are credited to your account within 24 to 48 hours,\nmaking personal loans the go-to option for many.<\/p>\n\n\n\n

However, just with any other\nloan, if you are not careful, getting a personal loan without enough\nthought and due diligence can have long-term repercussions financially. Here\nare six common mistakes you need to avoid.<\/p>\n\n\n\n

1. Not tracking your credit score<\/strong><\/p>\n\n\n\n

The first thing a financing company does is to check your credit score<\/a>. If you have a poor credit score, your personal loan eligibility\u00a0takes a hit. Then, even if you do get a loan, you may have to pay a much higher interest rate on account of the credit risk.<\/p>\n\n\n\n

2. Not reading the terms and conditions<\/strong><\/p>\n\n\n\n

Even though you may be in a hurry\nto secure the loan, make it a point to comb through the fine print. There may\nbe clauses in the contract that may put you in a spot later if you aren\u2019t aware\nof them. For example, some lenders may charge you a foreclosure fee on\nprepayment of the loan.<\/p>\n\n\n\n

3. Not shopping for the best option<\/strong><\/p>\n\n\n\n

Some people tend to take a personal loan based on instant approvals or zero processing charges. Even though this is not a bad thing, you should ensure that you are not making a hasty decision. By shopping around, you might find a lender offering lower personal loan interest rates<\/a> that can considerably reduce your debt burden.<\/p>\n\n\n\n

4. Opting for a longer loan tenure<\/strong><\/p>\n\n\n\n

This is the most common mistake most people make. In a bid to pay lower EMIs, it seems convenient to choose a longer tenure. However, the longer you take to repay a loan, the more interest you have to pay. Shorter the loan tenure, lesser the interest. Use a personal loan calculator<\/a> to know the EMI amount that suits your budget best.<\/p>\n\n\n\n

5. Taking too much or too little<\/strong><\/p>\n\n\n\n

It is important to assess your\nexact needs before you apply for personal loan. Taking more than you need again\nmeans paying excess interest. On the other hand, if you take too little and\nfall short of funds, it may become difficult for you to source another loan\nbased on your credit standing.<\/p>\n\n\n\n

6. Making too many applications<\/strong><\/p>\n\n\n\n

If you are in a desperate need\nfor a loan, do not make multiple applications at the same time. A hard enquiry\nduring loan assessment will reflect on your credit score, and too many enquiries\ncan adversely affect your score.<\/p>\n\n\n\n

For an easy to secure, absolutely transparent and affordable personal loan<\/a>, you need not look beyond Tata Capital. Whatever your financing needs, Tata Capital has you covered.<\/p>\n\n\n\n

Apply Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

A personal loan is the most convenient and quickest way to source money when you need it urgently. Whether it is money you require for an emergency. <\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":7022,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-7021","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-use-loan"],"yoast_head":"\nMistakes to Avoid When Availing a Personal Loan - TATA Capital Blog<\/title>\n<meta name=\"description\" content=\"Know the common mistakes to avoid when taking a personal loan, like not checking your credit score, not reading the terms, and choosing the wrong loan amount or tenure.\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mistakes to Avoid When Availing a Personal Loan - TATA Capital Blog\" \/>\n<meta property=\"og:description\" content=\"Know the common mistakes to avoid when taking a personal loan, like not checking your credit score, not reading the terms, and choosing the wrong loan amount or tenure.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/mistakes-to-avoid-when-availing-a-personal-loan\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-29T01:31:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-21T09:58:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2020\/02\/mistakes-to-avoid-when-availing-a-personal-loan.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tata Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tata Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/mistakes-to-avoid-when-availing-a-personal-loan\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/mistakes-to-avoid-when-availing-a-personal-loan\/\",\"name\":\"Mistakes to Avoid When Availing a Personal Loan - 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