What financial pitfalls should I avoid when applying for a personal loan?

When you’re thinking about a personal loan, it’s easy to get carried away and borrow more than you actually need. Many people make this mistake, but it can land you in trouble later. The bigger your loan, the higher your EMIs, and if you haven’t really worked out your repayment ability, you might find yourself struggling every month. It’s always better to figure out exactly how much you need before applying. Sit down, make a list of your expenses, and see what fits your budget. If you borrow only what you can comfortably pay back, you’ll avoid unnecessary stress.

Another thing to watch out for is applying to several lenders at the same time. Each application triggers a hard enquiry on your credit report, and too many of these can actually bring your credit score down. Instead, do your research, compare lenders, and pick the one that suits you best. Don’t rush into it—take your time to read the loan agreement in detail. The fine print matters. Sometimes hidden charges or tricky terms can surprise you later.
In short, borrow only what you really need, don’t overestimate your repayment power, and avoid making too many applications at once. Always read the terms and conditions carefully before signing anything. Being careful at the start can save you a lot of unnecessary hassle and money in the long run.