Most borrowers of loans against property pin hopes on future cash flows from their business, but in case of failure to repay the loan, the lender can repossess the property and sell it.
In the June quarter of FY24, 51 per cent of consumers who took small-ticket personal loans already had more than four credit products at the time of accessing yet another new loan, compared with just 17 per cent in the June quarter of FY20, points out Tamal Bandyopadhyay.
Enhancing your credit score is the key to improving loan eligibility and securing a favourable interest rate.
If you default, it will affect your credit score and your career.
Also build a contingency fund equal to 9 to 12 months of expenses.
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