Eight questions before accepting a loan
A simple checklist to bring to your conversation with a lender.
Confirm the money and repayment
Ask: 1. What is the sanctioned amount and how much reaches my account after deductions? 2. What rate applies, how is interest calculated, and can the rate change? 3. What are my EMI, tenure and total scheduled repayment?
Understand the charges
Ask: 4. What are all mandatory charges and applicable taxes? 5. What costs or conditions apply if I repay early, miss a payment or request a change? Request written answers specific to the loan being offered.
Clarify the conditions
Ask: 6. Is any security, guarantor, insurance or other product required, and what is optional? 7. What must happen before disbursal, and is the offer final or conditional? Avoid treating an indicative quote as an unconditional approval.
Keep a reliable record
Ask: 8. Where can I obtain the agreement, repayment schedule, applicable loan disclosure and official support or grievance contact? Read the documents before accepting. Do not share an OTP with a caller or transfer money based only on an unofficial message.