New Delhi: Many times we suddenly need money. If you do not have an emergency fund, then you may be forced to take a personal loan. Personal loans should always be taken from banks. However, NBFC i.e. non-banking financial companies and fintech companies also provide personal loans. You can take a loan from anywhere as per your convenience, but you need to be careful.

Take loan only from an institution registered with RBI

If you are not getting a personal loan from a bank and are taking a loan from a fintech company, then definitely check whether that institution is registered with the Reserve Bank or not. If the institution is not registered with RBI, then do not take a loan from it at all. Also, find out about the customer service of the financial institution. Sometimes there are some problems after taking a loan. If there is no customer care service, then you will not be able to get the right solution to your problems.

Don't fall into the trap of downloadable games

Many times people judge the credibility of an app based on the number of downloads on the app store. But, it is not necessary that the app with more downloads also has better service. You should always choose a fintech app based on its service quality. Also, you should be cautious of fake loan apps. These apps take the personal information of the user in the name of giving instant loans and then blackmail them.

Keep in mind the interest rates and loan tenure

The interest rate on personal loans is usually quite high because it comes under the category of unsecured loans. This means that you do not have to mortgage anything. This is the reason why banks charge higher interest rates on it. In such a situation, you should compare interest rates between banks and NBFCs. Charges like loan processing fees should also be taken care of. Keep in mind the loan tenure and choose according to your financial situation.