Many people take the help of personal loans from banks when they need money in emergency. In the last few years, banks have also simplified the process of getting a personal loan for people.
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Many people take the help of personal loans from banks when they need money in emergency. In the last few years, banks have also simplified the process of getting a personal loan for people. This is the reason why now people are not afraid to take personal loans from banks. Personal loan is also called unsecured loan. However, people should avoid taking personal loans for some work. Because the interest rate is very high in this.
Personal loan is expensive
Bank’s personal loan is costlier than other types of loans like home loan, car loan. In this, the interest rate is higher than other types of loans. In many cases, banks give personal loan to the person at the rate of more than 20 percent. In such a situation, many experts also advise the person to avoid taking personal loan.
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While taking a personal loan from the bank, a person does not need to pledge things like gold, car or house. If the person’s CIBIL score is good, then he does not face any difficulty in getting a personal loan from the bank. Many times people take personal loan also because banks make it available very easily.
Do not take personal loan to buy property
Some people also take a personal loan from the bank for its down payment while buying a property. Experts say it wrong. Under personal loan, one does not get the features as per the requirement of buying a property. Apart from this, they also have to pay a lot of interest. You should also avoid taking the help of a personal loan to buy a property.
At the same time, many people take a personal loan from the bank even to pay the credit card bill. In this, the interest rate of banks is high. That’s why your installments also increase. If you miss paying even one instalment, then your CIBIL score may get damaged. Due to this, you may have to face trouble in taking any loan in future.
Apart from this, avoid taking a personal loan to buy an expensive smartphone or to go on a trip to an expensive place. Money should not be invested in the stock market by taking a personal loan. If a person takes a home or car loan, he can repay the loan to the bank by selling it in the future. But there is nothing like this in the case of personal loans. You will have to take a second loan in this case. This will make your financial condition very bad.
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