If you think you can loan money is like any other money and you can spend it as you wish, then you are a fool committing one of the absurd acts in terms of finance. The foremost thought which you must-have in your head while applying for a loan is that loan money is no free money. Being a spendthrift and using the money frivolously will put you in big debt.
Loans have their own purposes. It must be used in times of financial emergencies. Let us now clear ourselves what are some of the financial emergencies a man can face:
Problems in your house maintenance Home is where one lives. So it is very much essential to maintain its value. If some problem happens in its wiring, plumbing, or painting, then you must tend to that immediately. Loans can be used for home renovation and refurbishing.
Healthcare Diseases are always around the corner. Accidents are bound to happen. Healthcare emergencies may knock on your door anytime. In those situations, for a medical operation, surgery or to buy necessary medical equipment, you can take a personal loan.
Business If you are planning a start-up or any small scale business, then definitely you can apply for the loan. If you are a farmer and you in need of a tractor, then a personal loan might be a good option for you.
Now, let us see how you shouldn’t use your personal/gold loan.
Never apply loan to satisfy your monthly needs like house rent, electricity bills etc. Because this will leave you in a debt immediately. Though it will give you money to spend freely, you will be put in financial stress later.
If you apply for a vehicle loan, then buy only vehicles with it. If you apply for a gold loan, buy jewellery. Likewise, if you apply for a student loan, pay your fees with it. Because there are many cases where the loan amount which is bought for a particular need is spent for different purposes. So do not do that.
Don’t apply for loans for self-pleasure activities like partying, marriage gifts, holiday plans etc. This will put you in unnecessary debt.
Last but not least; don’t do any criminal acts with the loan amount. Don’t involve violent acts against the government. Because you are not the only person being questioned here, but the bank which gave you a loan will also be put to vigorous scrutiny. So always be a rule-abiding citizen.
Kommentare