Taking personal loan? Why approaching too many lenders may hurt your cause

Here is a snapshot of interest rates, terms, processing fee, prepayment charges, etc, on various personal loan products offered by top lenders

1. A personal loan can be useful during emergencies. Lenders approve it quickly and don't ask for any collateral.

2. There are chances that the borrower may have a pre-approved loan. Though it is not a bad idea to consider it, do shop around for better offers.

3. Don’t apply for a loan with too many lenders. A higher number of queries can hurt your credit score.

4. Understand the fine print and check the processing fees. Some lenders don’t allow you to make pre-payment or foreclose the loan for the first 12 months.

5. Avoid lenders that charge you an advance equated monthly instalment. It’s a trick to increase your interest rate.

6. Opt for shortest possible tenure as this will reduce your interest outgo.