• Check the repayment tenure. Banks normally limit the maximum number of years for which a loan is given. Moreover the maximum number of years may be different for salaried individuals, self-employed individuals and self-employed professionals. At the same time the minimum and maximum loan amount that can be availed by an individual is also categorized in the same manner.

• Make sure that other costs such as processing charges, foreclosure charges, service charges and other charges are all worked out before considering the loan. You should look for zero processing fees and zero-penalty for foreclosure option but if it not available then hunt for the lowest option.

• All deals and offers agreed upon should be taken on fine print to avoid future hassles.

Although a personal loan is a friend in need but it should be ensured that it is not availed for a luxury that becomes a burden in the future.