Need emergency money now? Avoid personal loans with advance EMIs

It reduces the loan amount disbursed, but the borrower pays interest on the higher amount

* Personal loans can be a saviour in an emergency, and these days it's easier to get one. Most banks provide a pre-approved personal loan, which customers can avail with a few clicks, within seconds

* But a personal loan comes with a lot of restriction. Lenders also find ways to charge borrowers a higher interest rate than the one mentioned in the contract

* Many lenders don't allow part-payment or foreclosure for the first 12 months of the tenure. After that, they charge between 2 per cent and 5 per cent of the part-payment amount or the outstanding principal

* Be wary of banks that