Now that we have a fair idea about personal loans, let’s see the answers to some frequently asked questions:
What happens if you don’t repay the personal loan?
Not repaying a personal loan is completely discouraged since it can attract a range of negative impacts such as:
- Penal interest: The lender may charge a penal interest on the loan, for failed EMIs – a charge that you would want to avoid.
- Negative effect on your Cibil score: Any missed payment reflects in your credit history and negatively impacts your Cibil score. This is not to be taken lightly and should be avoided at all costs.
- Legal actions: The lender may opt for legal action to recover the outstanding money.
Can you get multiple personal loans at the same time?
It entirely depends on the lender. Usually, the same lender does not issue more than one loan to one customer at the same time. However, another lender can extend you a loan. But it entirely depends on the lender and your repayment capacity.
So, now that you know all the nitty-gritty of personal loans, it will definitely make you street smart when you apply for a personal loan for yourself. It is always better to know things before you jump in. Hope you have enjoyed the learning journey of the module. There are many such interesting modules we have curated for you in our ELM School. Do read them as well.