Need money? Avoid personal loans with advance EMIs, high processing fee

Understand difference between flat and reducing rate of interest

• A personal loan can be useful during emergencies. Lenders approve it quickly, don't ask for collateral, and there are no questions asked on the end-use of the funds
• There have been cases of bank executives misleading borrowers by mentioning the flat rate of interest instead of reducing rate. The former makes the interest rate appear lower
• A loan at 21.2 per cent reducing interest rate is the same as one offered at 12 per cent flat rate. The Reserve Bank of India (RBI) doesn't permit banks to provide loans on a flat rate of interest
• There are chances that the borrower may have