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According to the RBI report, the debt burden on Indian families has increased rapidly. In such a situation, it is important to be careful while taking a personal loan. Know here 5 important points before taking a loan.
New Delhi. Nowadays, there is an easy solution to every need: take a loan. Need a new car, dream of traveling abroad or need to renovate the house. Banks are just a click away. But is taking a personal loan the right decision every time? The pressure of debt on Indian families is continuously increasing. According to a recent RBI report, the liabilities of the average Indian household have increased by 102 percent between 2019 and 2025, while their financial assets have increased by only 48 percent, meaning over-borrowing is now becoming common. In such a situation, if you are thinking of taking a personal loan, then first look at these 5 important things, otherwise the burden of EMI can give you sleepless nights.
1. Think about what is really important
First of all decide how important it is to take a loan. It may make sense to take a personal loan to buy a house or for any urgent medical treatment, but not for leisure trips or luxury items.
2.Home loan is different, rest is different.
Loan for home can be given priority, but for other needs, take loan only when it is very important like education, emergency etc.
3. Do not take more money than necessary
If you need Rs 2 lakh, do not take a loan of Rs 2.5 lakh. More interest will have to be paid on higher amount. Similarly, do not take a loan of a large amount just because the bank is ready to give it.
4. Compare interest rates
Before taking a loan, compare the interest rates of different banks. This will reduce both your monthly EMI and total interest payment.
5. Loan against FD or mutual fund is better
If you have a fixed deposit (FD) or mutual fund, then it will be cheaper to take a loan against it. It is available at a lower interest rate than a personal loan because it is secured.
