Personal Loan: Never do this work by taking personal loan, instead of profit there will be big loss...

In recent times, the habit of taking loans has increased among people. Some people take loans when any sudden problem arises. People also take loans to buy a new car or house. Many times people take loans for business needs. Taking a loan is not bad. People often benefit from this, but in some cases taking a loan becomes costly.

Let us understand the point here with an example. Suppose someone offers you tremendous returns on investment or you feel that you can earn big money by investing money somewhere. Now the problem is that you do not have money to invest. In such a situation, you take a personal loan from the bank and invest. Whatever you had thought about investment turns out to be wrong and you do not get the right returns. In such a situation, there is a danger of you getting trapped in the debt trap. Taking loans for non-essential expenses also pushes people into the debt trap.

There are so many disadvantages of personal loans-
Let us know what things are important to keep in mind while taking a loan. If your income is sufficient to repay the loan then you often get a personal loan. Before approving your loan application, banks check things like income, job, credit score, ability to repay the loan, and past financial records. A personal loan is an unsecured loan. Therefore, there is no need to mortgage any asset. Being an unsecured loan, the interest rates on personal loans are much higher than secured loans like home loans, car loans, and loans against securities. Apart from the interest in personal loans, there are also charges like processing fees, EMI bounce charges, pre-payment or foreclosure charges, and GST on loan processing and pre-payment.

Despite all this, a personal loan can be taken under certain circumstances. Especially when you need urgent money. There is less documentation on this. The loan gets approved quickly and is also given. However, there are some situations when a personal loan should not be taken. Let's take a look at them.
The habit of taking loans and drinking ghee is wrong-

Often when you spend, you do not think about how you will repay it. If you spend a large amount, it becomes difficult to repay the money in one go. So you choose the EMI option. Many people take loans for expensive mobile phones, shopping, and traveling. These are tasks that are not your needs but are hobbies. Avoid taking personal loans for these. Instead of paying EMIs with heavy interest, it is better to save money every month and pursue your hobbies when you have enough money.

In such cases cheating will happen-
Many people, in order to make quick profits, invest in the stock market, some suspicious scheme, or some other work by taking a personal loan, where the risk is very high. In such a situation, if your investment gives poor returns or your money gets stuck or lost, then you may get into big financial trouble.

Don't make this emotional mistake-
Many times, due to emotions, you take a personal loan to help others. This is a big mistake. If the person for whom you have taken the loan does not pay the EMI, then the burden of the loan will fall on you, because if you have taken the loan, it is also your responsibility to pay it. Failure to repay the loan will damage your credit score. Therefore, take personal loans only for your personal needs and not for others.

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