What Mistakes to Avoid After Taking Personal Loan?

It is ever known by most of us that a personal loan is easy to avail. To apply for a loan, you just need to have a few clicks on your computer or smartphone. You will be able to avail the loan amount within a few hours and your loan purpose will be solved. 

But the real scene of a personal loan starts when the loan is disbursed and the repayment of the loan starts. From applying to disbursal of a personal loan, it just takes a few hours but repaying the same loan it takes a minimum of a year or a maximum of 5 years. The duration which we spend while repaying the loan is one of the most significant periods which determines how the loan resulted on you.

Here Are A Few Mistakes to Avoid After Taking A Personal Loan

Not Missing Emi

Once a loan is approved and disbursed, the next month onwards, you are to pay your EMI. The EMI of a personal loan must be disbursed on time till the end of tenure. If you are disciplined in repaying your loan, your credit score increases. But if you miss or delay the payments, you are to pay penalties as well your credit score is certain to fall. 

Not keeping the records

While you are paying off a loan, you are to keep your eyes on the loan account. If you avail an online personal loan, you will be provided an online loan account. Whenever you make pay an EMI or any extra payment like prepayment or part payment of a loan, you are to check the account whether the transaction is updated or not. 

 Not checking Credit Report

Each time you do any activity regarding your loan, your credit score going to be affected. When you are under a loan, you must periodically keep an eye on your credit score too. Once you make an extra payment or take pay off the loan, it must be reflected in your credit report. Sometimes credit bureaus may miss updating your credit report. IN such scenarios, keep on checking the credit report will help you to find such miss outs.    

Carelessly applying for Another Loan

If you are presently servicing a loan of any kind, your loan eligibility decreases. Let's say at a certain point your loan eligibility is Rs. 50,000. You have availed a loan of Rs. 10,000. So after a loan of Rs.10,000, your loan eligibility will be Rs. 40,000. In this scenario, if you apply for a loan which is more than Rs. 40,000 your loan application will be rejected. 

Not demanding for 'Non-Objection Certificate'

Once you have paid off the loan and there is no outstanding amount left, you are to obtain a ‘Non-Objection Certificate’ (NOC) from the bank which is the proof of closing the loan. A NOC states that the borrower has repaid the entire loan amount. The completed Personal Loan Repayments have to be ensured by the NOC provided by the lender.