The Do’s and Don’ts of Personal Loan

Do’s and Don’ts of Personal Loan | Stashfin

Personal loans can help you fund diverse needs like medical expenses, business/investment, holidays, wedding expenses, purchasing consumer durables, home renovation, debt consolidation, and more. While you have the benefit of using a personal loan for diverse expenses, you need to consider few aspects before taking a personal loan.

Here is a list of Do’s and Don’ts that you should follow while taking personal loans


  • Check Interest Rates

Before you settle for a loan offer, check the interest rates offered by the lender and compare it with others. A small difference in the interest percentage can save you hundreds if not thousands of rupees over the tenure of your loan.

At StashFin, we offer personal loans at very competitive interest rates and charge very low-processing fees.

  • Ensure the Loan is in Accordance with your FOIR

FOIR (Fixed Obligations to Income Ratio) = Total Debt/ Monthly Salary. Ensure your FOIR is between 30‑50%. It reflects that you are more capable of repayment and makes you more qualified to avail a personal loan.

StashFin relies on ML (Machine Learning) and AI (Artificial Intelligence) based eligibility check systems to give you the best personal loan offer.

  • Read the Offer Document Carefully

Read the fine print before deciding about a personal loan. Make note of crucial details like the time taken to approve, the EMI dates, maximum loan tenure, foreclosure charges, processing fees, and cheque‑bounce charges.


  • Don’t Neglect Your Credit Score

Keep track of your credit score to identify your shortcomings and take necessary measures to fix your credit health. A credit score of 750 or above can help you easily avail of personal loans.

  • Don’t Skip Your EMI

If you miss an EMI, your credit score will take a hit. A poor credit score makes it difficult to avail of loans in crucial situations in the future. Check whether you will be able to pay the EMI every month, if not consider reducing your loan amount or extending your loan tenure.

  • Don’t Use Personal Loans on Non-Essential Needs

Personal loans are useful under the right circumstances, but you should never avail them to fulfill aspirational and lifestyle-related needs, it will hurt your finances badly.

Do’s and Don’ts of personal loans | Stashfin

It is a good practice to keep a clean repayment record and good credit score for various purposes, including getting a personal loan approved in times of need.

Now that you know the Do’s and Don’ts of personal loans, you can explore the convenient credit line card and personal loan options that StashFin offers.

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