We all are burdened by the vagaries of life. Loans simply add to it. Cheer up! Remember the less you have the more there is to get, credit cards are like mosquito’s you can keep them away for a while but sooner or later they will come back to suck your blood.
Here the main factor a person needs to consider is Do I really need a loan. We notice nowadays that people take loans just on their whims and fancies. I see my neighbor with a new car, I want it too. He has the latest laptop I want it too. I do not consider my purchasing power but just make a quick purchase even if I have to take a loan. Here I need to take the following decisions. Financial Planning helps us to make these decisions.
Loan is basically a debt taken by the borrower that is the person who takes the loan, from the lender that is the person who gives the loan. Here the amount borrowed is the Principal which is to be repaid along with a certain additional charge called the Interest, paid back in regular installments for a certain period of time. Here the interest portions are the incentive for the lender to lend money to the borrower. We all know that nobody gives anything for free…on a lighter note I don’t find it hard to meet expenses .They’re everywhere…
Is this product really necessary for my well being? Can I live without it? Is it a necessity for my day to day activities? Remember do not try to walk before you can crawl.
Here we need to carefully introspect and answer these questions. Does my salary justify the purchase of this particular product? Am I a victim of mis-selling? If you think no one cares if I am alive try missing a couple of your loan payments.
If yes am I sacrificing better sources of investment in lieu of these payments? These are the questions we need to answer. Am I making an informed decision? For any questions regarding loans and types of loans contact IndianMoney.com to make an informed decision and get a general overview of the loan sector.
Nobody likes to be burdened by a loan and faster it is paid off better it is for all parties involved. Here one needs to consider the most comfortable time frame by which he can pay off the loan. A loan not only burdens the debtor but also his family. Remember if you can’t be good be careful.
A person should always weigh the need to purchase a particular item. Do I really need this particular item?Is it a luxury or a necessity. Once he makes the necessary conclusions after weighing the pros and cons he needs to take an informed decision. Remember half a loaf is better than no bread.
A number of new products such as mobile phones and smartphones are released every month which captivates our mind. We should not fall for such misleading tactics and buy only what we require. Do not argue with an idiot. He will drag you down to his level and beat you with experience.
Here we need to follow a simple golden rule. Never Borrow More Than You Can Repay. Here borrowing can become a bad habit and the person may borrow more than he can repay. This is similar to gambling where a person is in a high state of euphoria during the state of the game and keeps playing on borrowed money. This might take away money from certain important needs and the person might have to compromise on his day to day needs such as paying his day to day expenses, and the amount payable keeps accumulating until it becomes too hot to handle. Let us consider the worst case scenario where a person has taken a loan against collateral or a guaranteed loan. He is not able to repay the loan amounts and this might lead to an eviction from his house if it is on mortgage, a car repossessed by the bank in case of a default on car loans or business equipment and investments lost in case of a business loan default. This results in a financial and emotional loss to the borrower. Is this right on the part of the borrower to put his family in such a mess? Here in order to understand the loan sector and types of loans you can read IndianMoney.com.
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We come across cases where a student takes an educational loan and does not repay the amount as he believes the bank would write off the particular amount.W hat are the consequences of such actions. Would any other financial institution or bank come to know of it?
Bankers and other financial Institutions across the country report the credit information of the borrowers to CIBIL (Credit Information Bureau of India).It helps to eliminate cheating and fraud from the system. I would like to remind all of you that the team of Financial Planners at IndianMoney.com are always there for you to plan your Insurance needs in a most efficient manner. You can explore this unique Free Advisory Service just by giving a missed call on 02261816111.
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So how does all this affect a loan applicant and his chances of securing a loan? Here we need to consider the CIBIL TransUnion Score, a number basically between 300 - 900. In simple language this provides banks the customers who are likely to repay their loans on time, their eligibility to be provided with more loans. In simple language, a score close to 900 means customers who are most likely to pay back loans based on their past loan repayment history. If you have any complaints with regard to loans you have taken you can contact and post your complaint on IndianMoney.com.
So what happens to a loan applicant with a lower score close to 300. This is a question which must be going through the minds of all who take these loans.
I would like to conclude this article with the phrase “Look Before You Leap” as it is futile to think back once a commitment is made. So it is essential to plan in advance what one wants from his money. Here IndianMoney.com can help you to make the necessary Financial Planning decisions, if you wish to avail this unique free service from IndianMoney.com, just give a missed call on 02261816111.
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.
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