Never take a personal loan for these 3 purposes considering it as 'personal', otherwise you will regret it later.
If you fulfill the conditions of a personal loan, then you can apply for it anytime and from anywhere and it will be approved very easily. But it should never be taken for 3 purposes, otherwise, you may suffer a lot.
A personal loan is a loan which is available very easily. For this, you do not need much formality. If your salary is good and your credit score is good then banks approve your personal loan very easily. The good thing is that for a personal loan, you do not have to mortgage anything with the bank. Therefore, this loan is kept in the category of unsecured loan.
You can use the amount of personal loan anywhere according to your convenience. If you fulfill the conditions of personal loan, then you can apply for it anytime and from anywhere and it will be approved very easily and in a short time the loan amount will be credited to your account. But do not consider this easily available loan as 'personal' and use it for such works, which will increase your trouble. Here know about 3 such works, for which taking a personal loan should be completely avoided, otherwise you can also get entangled in the debt trap.
To repay the loan
When many people borrow money from someone and are unable to repay that loan, then they take a personal loan to repay the loan. But if you are taking a loan again to repay a loan, then this is not a wise decision at all. Apart from this, personal loan is an expensive loan. In such a situation, you will have to pay a good installment every month. If you do not repay the personal loan, then you will get entangled in other loans rapidly. Along with this, your credit score will also be bad. In such a situation, you will face a lot of trouble in taking loans in the future.
To buy shares
Personal loans should never be used to buy shares. You do not know whether the price of shares will rise or fall. It all depends on the market conditions. If you take a personal loan and invest money in shares and the shares also go into loss, then you will suffer a double blow. You will incur a loss from shares as well as the debt of personal loan will also mount on you.
To fulfill expensive hobbies
The interest rates of personal loans are very high, so personal loans should be taken only when you need it and are unable to arrange money from anywhere. Never fulfill your expensive hobbies like buying expensive mobiles or traveling abroad by taking a personal loan. This will be a very expensive and loss-making deal for you.
