In the last 10years, the demand for a personal loan has risen above more than stock market trades. With the increase in demand for new gadgets, trendy products, and a modern lifestyle, generations X Y, and Z has started loaning products to enhance their lifestyle requirements. A kind of mad race is visible among our youngsters to update themselves with the latest technology and for this, they don't worry to pay extra than the actual price of a product. A 1lakh rupees phone functions just like a 20,000 rupees phone, but youngsters are more inclined in paying a lakh rupees for a phone instead of a simple and sober phone. Reason? To stay updated according to the current trends and value fashion more than financial management.
A personal loan is a loan that you borrow from banks, NBFC, private institutions, etc. against without any collateral and that is completely based upon your borrowing history. As there is no collateral amount in the personal loans, the interest rate is way much higher in comparison to the other loans. The personal loan rate of interest varies from 10% to 40% depending upon the borrowing history and credit score.
A personal loan can be used for anything, like vacations, gadgets, home décor, and debt consolidation. But all the above examples except debt consolidation should be considered before opting for a personal loan because a loan for a leisure purpose isn't a good idea at all. With years of experience in the industry, we at Loanwalle, always advise our customers not to borrow money for leisure purposes.
A personal loan is like a weapon, if fired in the right direction it can save you, but if it is fired in the wrong direction, it can seriously harm yourself and your family. In the pandemic, we have seen many people borrowing loans to buy furniture and gadgets. According to research, an expensive laptop range was sold thrice more in this pandemic. The uncertainty in the jobs and increasing debts caused depression among the people and because of this, many people committed suicides, and many recovery agents from different loan companies were arrested.
We, at Loanwalle, never provide loans for casual purposes, many lenders in the market provide loans more than the salary of people because of which people are unable to pay their loans and they keep on defaulting the payments. Resulting in a bad credit score and a bad reputation among society. But, Loanwalle is the leading fintech organization that provides as little as 50% loan of the total salary of the person so that after the salary day, a person can repay easily and further he can live his livelihood with his remaining salary.
Being a responsible organization with a good reputation in the business, considers personal loan as an emergency fund allocation, neither a necessity nor a luxury. In case of extreme emergencies, like an accident, vehicle breakdown, severe health issues, a loan should be considered as an emergency tool. Talking from the organization as well as an individual experience, a loan is a bad option if anyone is taking it for leisure or vacation purposes. So, next time if you are opting for a personal loan, always remember, some people keep on borrowing money to pay back their loans only!
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