If you suddenly need money, then take a personal loan or arrange money from PF, know what is the right way.

Is it right to take a personal loan when you need money or is it right to take money from a PF account? Today we are going to tell you about these two options. Today we will tell you where to arrange money can be the best option when you need money. Let us know.

Money can be needed by anyone at any time. In such a situation, every person should keep an emergency fund ready, but some people do not understand the importance of emergency fund and it becomes very difficult for such people to arrange money in difficult times. Many people take personal loan from the bank in such a situation, while many people withdraw money from their PF account at such times.

Today we will tell you where to arrange money can be the best option when you need money. Let's know.

Arranging money from PF

Suppose you need Rs 5 lakh and you are withdrawing money from your Provident Fund i.e. PF account, then it will cause loss to your retirement fund. PF gives the benefit of 8.25 percent interest rate. Along with this, the benefit of compounding is also available. In such a situation, if you withdraw Rs 5 lakh, then you will lose the interest of Rs 2.45 lakh in the coming 5 years.

Arranging money from personal loan

If you take a personal loan of Rs 5 lakh from the bank when you need money, then you will have to pay EMI every month. Personal loan is a very expensive loan. In such a situation, you may have to take this loan at a very high interest rate. Suppose you take a personal loan of Rs 5 lakh from the bank for a period of 5 years at an annual interest rate of 13 percent, then you will have to pay Rs 11,377 every month as EMI. In this way, you will pay a total of Rs 1.82 lakh only for interest.