Don’t Fall in These Traps for Personal Loan

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.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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