 "Need cash now? Avoid taking a personal loan for discretionary purchases")
• A personal loan can be useful during emergencies or to pay off loans with higher interest rates
• Lenders approve it quickly, don't ask for collateral, or about the end-use of funds
• Avoid taking a personal loan for discretionary spends, such as to buy a gadget or consumer durable, or to fund a vacation
• Avoid personal loans that ask for advance EMIs or higher processing fees. These will increase your outgo to the lender
• Many borrowers tend to borrow more than they need, especially in case of pre-approved loans. Stick to the amount you need
• Before taking a personal loan, check for options like top-up home loan, or overdraft facility on FD
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