Loan approved? Great! But don’t sign the agreement just yet. 👀
Before putting your signature on a loan agreement, take a few minutes to understand what you’re actually agreeing to. A little checking today can save you from unexpected charges later.
1. 💰 Loan Amount
Check the exact loan amount you are getting. Also see if any processing fees or other charges will be deducted before you receive the money.
2. 📈 Interest Rate
Don’t just look at the EMI. Check the interest rate and whether it is fixed or floating.
A small difference in interest can make a big difference to your total repayment.
3. 🗓️ EMI & Tenure
Check:
- How much EMI will you pay?
- For how many months/years?
- What is the EMI due date?
Make sure the EMI fits comfortably into your monthly budget.
4. 💸 Extra Charges
This is where many borrowers get surprised.
Look for processing fees, late payment charges, bounce charges, prepayment/foreclosure charges, and other applicable costs.
5. 🚨 What Happens If You Miss an EMI?
Life happens. So know beforehand what happens if you delay or miss a payment.
Check the penal charges and other consequences, including the possible impact on your credit history.
6. 🔓 Can You Repay Early?
Planning to close your loan early? Check the rules for part-payment and foreclosure before signing.
Know whether any charges or conditions apply.
7. 📝 Check Your Details
Before signing, make sure your name, loan amount, interest rate, EMI, tenure, address, and other important details are correct.
Found a mistake? Get it corrected before signing.
8. 📄 Read Before You Sign!
Don’t skip the terms and conditions just because they look complicated.
If you don’t understand something, ask.
Quick Rule: STOP ✋ Before You Sign
S — Sanctioned amount
T — Terms & interest rate
O — Other charges
P — Payment & prepayment rules
Final Takeaway
Loan approval is exciting, but the agreement deserves your attention.
Read it. Understand it. Then sign it. ✅
At FinanVita, we believe an informed borrower is a confident borrower.