Personal Loan
Good or Bad

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By SK Sharma

Personal Loan

Personal loan is a main resource of fund for salary account holders in case of need .
Whenever any salaried employee visits for bank for loan for marriage , purchasing
of daily need products , medical treatment etc banks offers them Personal Loan product.

Is it beneficial?

Personal Loan is beneficial products for banks and not for you .

 Banks charge a high rate of interest on personal loans and Proposal processing charges and documentation charges also
very high on personal loans.

How to avoid ?

Make a saving habit for any type of emergencies to avoid personal loans .

If require then it should be repaid as soon as possible ..

For Home Repair

Sometimes it is also observed that we require 4 or 5 Lac for home repair or home extension but instead of offering home loan , bank offers us Personal Loan .

Please go for Home loan as it is much cheaper than Personal Loan .

You can also avail tax benefit on housing loan .

Conclusion: 

It does not mean that personal loans are of no use .

In emergencies it is better tool keeping
in the mind less documentation and fast processing by the banks .

Hence use the product as per need .