There are many pros of getting a personal loan to pay for critical expenses when you don’t have the funds but are in a position to repay the loan over a stipulated period of time. You just need to pay your equated monthly installment or EMI and you can avail a loan without a property or other assets to serve as collateral. Since there is a fixed term which is usually less than 5 years, you don’t run the risk of incurring a long term debt.
However, before applying for a personal loan, there are some things that you should be careful about. Often times, particularly if you approach a non-banking financial services provider, they may try to cross sell an insurance product along with the loan. The typical argument for this is rather emotional – in the unfortunate event of the applicant’s demise or accidental disability rendering him/her incapable of repaying the loan, the burden should not fall on the applicant’s bereaved survivors.
