In my earlier posts I have often argued that personal loan is one of the worst form of loans, and I stand by it. And maybe, this subject line may seem to be a click bait!
Yet there are few benefits (relatively speaking!) of taking a persona loan vis a vis the other alternatives available at that point of time.
Here are a few of them:
- It can help you tide over unforeseen emergency. (e.g medical, or sudden unplanned expense for child’s education).
- It may, at times be, less worse option than taking a credit card debt, or maybe even a consumer loan (depending upon the rate of interest offers)
- If you analyse your personal loans and realize that you have been losing lot of money, you may be tempted to take corrective actions and this can do wonders for you in long run!
- It may help you build a credit history. Not sure, if taking personal loan is worth it, though.
- And if instant gratification at the cost of potentially paying more for it (and jeopardizing financial planning a bit) is something you aspire for, personal loans may be good.