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  • Category: Miscellaneous

    The loan or EMI system is for your convenience, not to put yourself in trouble.

    Getting a loan is easy in some cases and difficult in some cases. But when people start getting loans easily, many times people start taking the wrong advantage of it. Nowadays the system of EMI that is Equated Monthly Installment is applicable for every item and if a person wants, one can also buy an expensive mobile by paying a low price and giving monthly installments, and people are doing this too. But some people are opting for EMI for every little thing that they want to provide themselves.

    The elders always used to say one thing, spread your feet, as per the sheet, that is, buy as much as you afford, and that is the reason our elders do not follow the loan system and they buy by savings. But at present, it may not be fully applicable, still, it should be known that its need will never end. And drowning yourself in debt to fulfill every requirement will create big troubles for yourself in the future.
  • #737926
    Nicely said by the author. Now a days it has become fashion for the people to go for the Loans and EMI even though they have the ability pay the amount from their bank balance and even pay on cash. One of my relative who went for two wheeler purchase without consulting me and ended up paying 6000 more in staggered payment EMI and even though he had the cash balance with him. Even education loans are becoming costly as they are charging comound interest after the due date and even before the candidate getting the job. So going for loans are having risk factors and one has to consult the experts before deciding.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #737932
    To avoid and prevent falling into a debt trap, people should avoid temptation of borrowing for unessential things and needs. The core principle one should understand is that the borrowed money is to be repaid ,and with additional amount, ultimately. It is actually a deferred payment. So it is basically about our repayment capacity. We should not take more than what we can repay today or tomorrow.

    Even for borrowing or genuine needs and essential, one should red and understand all the terms and conditions including the fine print. Many times, we see that the actual amount of repayment each month is more than what we were thinking. This is because there is an element of tax also included. Most terms are silent or vague in this regard.

    If properly understood and planned and not defaulted , loans with EMI are a convenient way to satisfy our needs. But prudence, caution, moderation and financial discipline are very much needed.

  • #737938
    Buying things with EMI is easy for the customers and much beneficial to the sellers. The borrower has ample time to repay the loan with the interest amount. Also the lender gets the interest for his money. It is a good system that the things get sold quickly. But we should work out our paying capacity before buying things on EMI.

    Most of the household things that I bought were through EMI, viz TV Washing Machine, Sewing machine, Refrigerator.

    I did not buy a car on EMI as it is a big elephant, and interest charged is very high. I am quite satisfied with my good old Padmini who is now 48 years old. These days, I wait for the money to accumulate to buy the item I desire. Save and spend is the principle I follow now. That won't make me to worry.

    No life without Sun

  • #737943
    Those who don't have a sufficient amount to purchase expensive items can buy in instalments. They find it convenient to purchase their desired expensive items. But some people don't take the unnecessary burden of loan on their mind, so they don't opt for EMI, instead, they save some money every day and when they have mustered up a sufficient amount which may purchase their desired item they take out their saved money.

    I agree with the author that we should not go for taking the burden of EMI. When we purchase several items and we have to pay instalments for all the items, it creates unnecessary pressure on the mind. Sometimes, it happens that we have lost our job or faced any financial problem and we are not able to deposit EMI in this situation we can go into deep trouble. However, those who have no problem paying EMI may go for it.

  • #737956
    Correct. Purchasing items by talking loans and paying them back in the form of EMI has become the order of the day. The job holder in various organisations wants to have a comfortable life. So they go for luxury items also by taking loans. A major portion of their salary will go for paying these EMIs.
    But I feel taking loans and purchasing items that are not essential is not a wise idea. We all should understand that no company is giving loans to you with interest. That means you are spending more money than the value of the product you purchased. When we pay EMIs e never feel that we are paying that much. But we sum up the total payments we will understand how much excess we have paid.
    As an individual, I never prefer purchasing any item on EMIs. I purchase items by paying fully. The seller may give some concession also for the down payment. But for my house construction, I have taken a loan and I paid back the loan completly by paying EMIs only. I have not lost anything in this bargain as the cost of my house as of today is more than what I spent totally including the amount paid in the form of EMIs.

    always confident

  • #737993
    Here we should also talk about the so called personal loans which are being offered on the cell phones from un known sources in our social media groups as if we have sought them the details. I have been constantly receiving messages that five lakh loan is readily available without paper work and that proves there is a deliberate attempt in vested interest to trap those who want the money instantly and then bother them with recoveries instantly by asking to pledge some assets. So we have to very careful as to with whom the loan must be availed, what is the interest rates and how they calculate for the compounding period.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #737995
    Though it is very easy to have a loan from the different banks on EMI basis for purchasing the different items of our needs, but mind it by doing so, you may be trapped badly with a bad practice. You may be tempted to have more purchases on such basis which might put you into a debt for a long time. If you compute the interest of all such loans, it would appear a whopping amount being paid along with the principal. We need to control the habit of purchasing of items through the loan because of bad habits forming ultimately. Since there are varied items in the market not being disposed of by the malls or the stationary stores, they would attract the customers with the different offers even requesting you to have the articles on availing loans on EMI basis. You need to be careful to manage your finances effectively and should not be tempted to avail of such loans which could ruin you in the long term.

  • #738012
    The loan scheme and the EMI scheme are a boon to the common man and those earning a monthly salary. Increasing living facilities over time is becoming a necessity for any family. Nowadays, education is completely online, so a good mobile phone, a tab, a laptop or a desktop is essential. But isn't such an EMI system a boon for those who can't afford it at full price?
    But the EMI system and the loan system become a curse when its users use such systems without realizing their financial status. How can a person with a salary of Rs. 25000 per month accept EMI type loans of Rs. 20000 per month for various purposes and repay them in full? The thought that comes to his mind while taking EMI is that he can spend Rs.5000 per month on living expenses. That will entirely true of that climate. But there had expected that many unforeseen problems could come and go during this period. For many, going without it is humiliating. Sometimes it will be an accident, or sometimes it may a hospital stay with some disease. Or it could be something else. Although it is not known at first what they are, something like this may happen. The loans and EMI are a curse for those who fail to raise a reserve fund from their salary. They are drowning in debt.

    "Cheruthulli Peruvellam"
    small drops make a mighty ocean

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