What precautions should I take before signing a personal loan agreement?

Before you sign a personal loan agreement, it helps to sit with the papers for a few minutes and read them the way you’d read a phone bill — slowly, not assuming anything. Most people just check the EMI and move on, but the small lines matter later.

• Start with the basics you discussed: the rate, the EMI amount, and the number of months. If any of the details looks different from what the person told you on the call, pause and ask.
• Look at the fee page. Processing charges, small admin fees, and what happens if you pay late — all of that is usually included in there.
• Check when the first EMI goes out. Sometimes it’s right after disbursement, sometimes after a few weeks. It’s easier if you know this before your salary date.
• Some agreements add optional things, like insurance or service add-ons. If you didn’t request it, say so before signing.
• And once you’re done, keep a photo or scan the signed pages. Helps later if you need to confirm anything.