Market Magic

Ten tips on how to avoid taking a loan

Funding your dreams and meeting your needs have never been so easy. Be it your dream home, car, iPod , yearly holidays, plasma TV, or even a Delhi-Mumbai air ticket, you can stop fretting over the cost factor . Banks are more than ready to address all your worries with loans for all your needs. But, as the saying goes, all good things come at a price and this is no exception.

This is the EMI age, where a major chunk of your monthly income goes towards repaying our loans. Certainly, financing all your needs with easily available loans seems an immediate solution for fulfilling all your present dreams. However, the ghosts of repayment and high interest expenses are more than enough to rob all your sleep for the rest of the life.

Do some plain calculation of adding up all the EMIs (equated monthly instalments) that you are supposed to pay over the full loan tenure and then compare the figure with the actual cost of the product. An astounding sum would come out staring at your face. This is the price that you are paying for not living within your budget.

Even if you are capable of repaying your loans, it makes little sense to opt for a loan for just any reason under the sun. Loans might be necessary and unavoidable in certain cases, but most often one can avoid taking interest-guzzling loans, at least in part. Just pay heed to measures mentioned here and you can end up with savings lakhs in your life time.

posted by Arhaan @ 8:54 PM