Good or Bad
By SK Sharma
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 .
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 .