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Nowadays, bank loans have become a common way to meet the requirements. People are taking home loans for home, car loans for cars, and personal loans for personal expenses. It helps people to meet their needs immediately.

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In such a situation, if you are also planning to take a personal loan from the bank to meet any of your personal needs, then first you should know about some important things related to this loan so that you do not have trouble in the future. Let us know.

Personal loans are the most expensive -
Personal loans are much more expensive than home and car loans, because their interest rates are very high. Therefore, it should be taken only when it is very necessary. It also charges many additional charges like processing fees, pre-payment charges, and late payments. Also, there is no tax exemption on personal loans, which proves to be even more expensive.

Short-term loan-

A personal loan has a shorter repayment period as compared to a home loan. In such a situation, its EMI can be higher, which can increase financial pressure on you.

Effect on credit score-
Due to not being able to pay the EMI of a personal loan or not repaying it on time, your CIBIL score can be affected.

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