Personal Loan Management

Personal loans should be last resort of financial assistance as the interest rate on these loans is higher. Even if the loan is taken, it is always suggested to repay it as soon as possible.
Indians normally invest in gold and they always have gold at their disposal. These days banks and other financial companies are offering loans on gold for a less interest rate. The amount taken in this form can be used to pay the personal loan. Gold is constantly not used, so it can be a great asset to get money and repay outstanding loans.
People who opt for loans are always under the assumption that if the loan is taken for a longer duration then the equated monthly installment would be less. The longer the loan period the higher would be the EMI and the interest rates would be accumulated. Loans should be taken for short periods and should be repaid whenever there is money at disposal. Trying to delay loan repayments would only lead one into bad credit. This would also curb them from applying for any further loans in the future.
Personal loans are easily available with any bank. Some banks have attractive offers too. However it is always better to stay away from personal loans if possible. Instead of personal loans, apply for short time loans which can be repaid easily. If there is a fixed deposit or shares, it is always a good option to sell it than go for a personal loan.
Family and friends can also be a source for seeking financial assistance if the help required is for less money and for a brief period. Personal loans would only exhaust one of their savings and the burden of loan is always leaves stress.
Personal loans can be opted for if one is sure to get some money in the near future which can repay the loan. For example, the fixed deposit term is close by however there is a medical emergency which has to be met immediately. Then opting for a personal loan makes sense as the amount from the fixed deposit can be used to repay the loan.
If taking a personal loan is the only option, the applicant should ensure that a thorough research is done on the options available in the market. Some banks offer attractive schemes on personal loans and the interest rates would also be low. So applicants shouldnt hastily go in for a personal loan. Depending on the need the amount for the loan should be chosen with the right bank.