3. Check your ability to repay the loan: When taking a personal loan, it is very important to be sure that you are able to pay it back. To find out how much your EMI would be, use an EMI calculator. You need to enter details like loan amount, interest rate and tenure and the calculator displays the EMI. Your EMI should be such that you can pay it back without straining your finances. For this, you need to analyse your cash flows carefully. The total portion of your income that you pay as EMIs should not exceed 40 per cent of your total take home income. Here, deciding on the loan tenure also plays an important role. A shorter tenure means a higher EMI and vice versa, but a longer tenure means paying higher interest rates. Keep all these factors in mind before going for a personal loan.