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  • Category: Miscellaneous

    How much loan one should take?

    Today there are a large number of banks and financial entities which are ready to lend the money to the needy persons on presenting the required documents and eligibility conditions. So getting loan is easier today as compared to the earlier times. Another thing is because of falling interest rates the loan interest rate has also come down significantly. But the question which arises at this juncture is whether loan is really required and if yes then how much loan a person should take.
    It does not look logical that we should go for a loan because its is easily available to us. The first thing to be considered in this matter is why we require a loan and if we require it then how would we be able to repay it. Only after doing a complete analysis one should opt for a loan. A wrong decision in this matter can be a painful experience later when a person is not able to repay the loan. In case of a need a person should go for the minimum loan that meets his need at that point of time. What are your thoughts on it?
  • #754990
    I am totally against taking loan when we are able to maintain the life with the available funds and can even adjust for the future. Loan is always accompanied by the interest and that should be paid periodically and if failed it would turn into compound interest and even seizing of the things or discontinue of the service if not interest paid. Now the banks and financial institutions are not approached by many and hence they are coming calling to us even going to the risk of lending loan without proper documentation. The main aim is to earn interest out of the lending and we must be very guarded in taking loans. Even vehicle loans are very costly, educational loans are not that easy to repay. We may get through the problem for a while but the after effects of loan would be for years together and we may be gappling to repay.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #754997
    If we ask the same question to my father, his immediate reply will be no loan at any cost. He always used to advise me that we should not go for loans and if we take loans finally we will end up in paying interest and we will be always financially struggling.
    But days are changes. People are not hesitating to take loans. But we should see our income and how much money we can spare for paying the EMI. Then comes why loan is required. People who are staying in rented houses and paying monthly rents can think of taking a loan and purchasing a house. The amount he is paying as rent may go as EMI. Of course we have to add some additional money. But the house will become our own and we will get tax exemptions also.
    Like this we should think two issues. First one is the necessity of the loan and then the quantum of loan.

    always confident

  • #755002
    As far as I think, taking loans always are not the prudent ideas but we should try our level best to contain our expenses as far as possible. It later becomes a habit forming habit which we have experienced many times while visiting malls. Though the articles purchased from the mall was not the immediate necessity but since we had to make some purchases of daily items and the payments were to be made through the credit card, we had the temptation of taking some items not immediately required. This will certainly impact us in terms of repayments through the instalments.

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